The effects of perceived fairness on opportunistic behavior

Contemporary Accounting Research

Volumn 24, Issue 4, 2007, Pages 1119-1138

  Cohen, Jeffrey R ^a   Holder Webb, Lori ^b   Sharp, David J ^c   Pant, Laurie W ^d  

^a BOSTON COLLEGE   (United States)

^b UNIVERSITY OF WISCONSIN MADISON   (United States)

^c UNIVERSITY OF WESTERN ONTARIO   (Canada)

^d SUFFOLK UNIVERSITY   (United States)

Author keywords

Accounting ethics; Agency models; Earnings management; Fairness

Indexed keywords

EID: 37549017708     PISSN: 08239150     EISSN: 19113846     Source Type: Journal    
DOI: 10.1506/car.24.4.3     Document Type: Article

References (71)

1. Ajzen, I. 1988. Attitudes, personality and behavior. Chicago: Dorsey Press.
2. Aimer, E. D., J. L. Higgs, and K. L. Hooks. 2005. A theoretical framework of the relationship between public accounting firms and their auditors. Behavioral Research in Accounting 17: 1-22.
3. Baiman, S. 1982. Agency research in management accounting. Journal of Accounting Literature 1: 154-213.
4. Baiman, S. 1990. Agency research in management accounting: A second look. Accounting, Organizations and Society 15 (4): 341-71.
5. Bay, D. D. 2002. A critical evaluation of the use of the DIT in accounting ethics research. Critical Perspectives in Accounting 13 (2): 159-77.
6. Bay, D. D., and R. R. Greenberg. 2001. The relationship of the DIT and behavior: A replication. Issues in Accounting Education 16 (3): 367-80.
7. Bernardi, R. A. 1994. Validating research results when Cronbach's alpha is below .70: A methodological procedure. Educational and Psychological Measurement 54 (3): 766-75.
8. Bernardi, R. A., and C. C. LaCross. 2004. Data contamination by social desirability response bias in research on students' cheating behavior. Journal of College Teaching and Learning 1 (8): 13-25.
9. Chow, C., J. Cooper, and S. Waller. 1988. Participative budgeting: Effects of truth-inducing pay scheme and information asymmetry on slack and performance. The Accounting review 63(1): 111-22.
10. Cohen, J., and L. Holder-Webb. 2006. Rethinking the influence of agency theory in the accounting academy. Issues in Accounting Education 21 (1): 17-30.
11. Cohen, J., L. W Pant, and D. J. Sharp. 1994. Behavioral determinants of auditor aggressiveness in client relations. Behavioral Research in Accounting 6(1): 121-43.
12. Cohen, J., L. W. Pant, and D. J. Sharp. 1996. Measuring the ethical awareness and ethical orientation of Canadian auditors. Behavioral Research in Accounting 8 (Supplement): 98-119.
13. Cohen, J., L. W. Pant, and D. J. Sharp. 1998. The effect of gender and academic discipline diversity on the ethical evaluations, ethical intentions and ethical orientation of potential public accounting recruits. Accounting Horizons 12 (3): 250-70.
14. Cohen, J., L. W. Pant, and D. J. Sharp. 2000. Project earnings manipulation: An ethics case based on agency theory. Issues in Accounting Education 15 (1): 89-104.
15. Cohen, J., L. W Pant, and D. J. Sharp. 2001. An examination of differences in ethical decision-making between Canadian business students and accounting professionals. Journal of Business Ethics 30 (4): 319-36.
16. Colquit, J., and J. Greenberg. 2003. Organizational justice: A fair assessment of the state of the literature. In Organizational Behavior: The State of the Science, ed. J. Greenburg, 165-210. Mahwah, NJ: Lawrence Erlbaum Associates.
17. David, H., and R Militello. 1994. The empowered organization: Redefining the roles and practices of finance. Morristown, NJ: Financial Executives Research Foundation.
18. Eisenhart, K. 1989. Agency theory: An assessment and review. Academy of Management Review 14 (1): 57-74.
19. Enzle, M. E., and S. C. Anderson. 1993. Surveillant intentions and intrinsic motivation. Journal of Personality and Social Psychology 64 (2): 257-66.
20. Evans, J. H., R. L. Hannan, R. Krishnan, and D. V. Moser. 2001. Honesty in managerial reporting. The Accounting Review 76 (4): 537-56
21. Fehr, E., and K. Schmidt. 1999. A theory of fairness, competition, and cooperation. Quarterly Review of Economics 114 (3): 817-68.
22. Ferraro, F., J. Pfeffer, and R. Sutton. 2005. Economics language and assumptions: How theories can become self-fulfilling. Academy of Management Review 30 (1): 8-24.
23. Flory, S., T. Phillips, R. Reidenbach, and R. Robin. 1992. A multidimensional analysis of selected issues in accounting. The Accounting Review 67 (2): 284-302.
24. Frank, R. H., T. D. Gilovich, and D. T. Regan. 1993. Does studying economics inhibit cooperation? Journal of Economic Perspectives 7 (2): 159-71.
25. Geiger, M. A., and B. T. O'Connell. 2000. An examination of using surrogate measures to assess social desirability response bias. Research on Accounting Ethics 6(1): 107-27.
26. Ghoshal, S. 2005. Bad management theories are destroying good management practices. Academy of Management Learning & Education 4 (1): 75-91.
27. Ghoshal, S., and P. Moran. 1996. Bad for practice: A critique of the transaction cost theory. Academy of Management Review 21 (1): 13-47.
28. Greenberg, J. 2002. Who stole the money, and when? Individual and situational determinants of employee theft. Organizational Behavior and Human Decision Processes 89 (1): 985-1003.
29. Hannan, R. L., F. W. Rankin, and K. L. Towry. 2005. The effect of information systems on honesty in managerial reporting: A behavioral perspective. Working paper, Georgia State University.
30. Harrell, A., and P. Harrison. 1994. An incentive to shirk privately held information, and project evaluation decisions. Accounting, Organizations and Society 19 (7): 569-77.
31. Harrison, P., and A. Harrell. 1993. The impact of adverse selection on managers' project evaluation decisions. Academy of Management Journal 36 (3): 635-43.
32. Healy, P. M., and J. M. Wahlen. 1999. A review of the earnings management literature and its implications for standard setting. Accounting Horizons 13 (4): 365-83.
33. Johnson, D. R., and J. C. Creech. 1983. Ordinal measures in multiple indicator models: A simulation study of categorization error. American Sociological Review 48 (3): 398-407.
34. Jones, J., D. W. Massey, and L. Thorne. 2003. Auditors' ethical reasoning: Insights from past research and implications for the future. Journal of Accounting Literature 22 (1): 45-103.
35. Jones, T. 1991. Ethical decision making by individuals in organizations: An issue-contingent model. Academy of Management Review 16 (2): 366-95.
36. Kahneman, D., L. Knetsch, and R. Thaler. 1986. Fairness as a constraint on profit seeking entitlements in the market. American Economic Review 76 (4): 728-41.
37. Kaplan, R., and A. Atkinson. 1998. Advanced management accounting. Englewood Cliffs, NJ: Prentice Hall.
38. Kohlberg, L. 1969. Stages and sequences: The cognitive developmental approach to socialization. In Handbook of Socialization Theory and Research, ed. D. Goselin, 347-480. Chicago: Rand McNally.
39. Kohlberg, L. 1984. Essays on moral development: Volume 2, The Psychology of Moral Development. San Francisco: Harper and Row.
40. Kren, L. 1997. The role of accounting information in organizational control: The state of the art. In Behavioral Accounting Research: Foundations and Frontiers, eds. V. Arnold and S. G. Sutton, 1-48. Sarasota, FL: American Accounting Association.
41. Libby, T. 2001. Referent cognitions and budgetary fairness: A research note. Journal of Management Accounting Research 13 (1): 91-106.
42. Louwers, T., L. Ponemon, and R. Radtke. 1997. Examining accountants' ethical behavior: A review and implications for future research. In Behavioral Accounting Research: Foundations and Frontiers, eds. V. Arnold and S. G. Sutton, 181-221. Sarasota, FL: American Accounting Association.
43. Luft, J. 1997. Fairness, ethics and the effect of management accounting on transaction costs. Journal of Management Accounting Research 9 (1): 199-216.
44. Marwell, G., and R. E. Ames. 1981. Economists free ride, does anyone else? Journal of Public Economics 15 (3): 295-310.
45. Merchant, K. A. 1998. Modern management control systems. Upper Saddle River, NJ: Prentice Hall.
46. Miller, D. T., and R. K. Ratner. 1996. The power of the myth of self-interest. In Current Societal Issues in Justice, eds. L. Montada and M. J. Lerner, 25-48. New York: Plenum.
47. Miller, D. T., and R. K. Ratner. 1998. The disparity between the actual and assumed power of self-interest. Journal of Personality and Social Psychology 74 (1): 53-62.
48. Noreen, E. 1988. The economics of ethics: A new perspective on agency theory. Accounting, Organizations and Society 13 (4): 359-69.
49. Paulhus, D. L. 1991. Balanced inventory of desirable responding. In Measures of Personality and Psychology Attitudes, eds. J. P. Robinson, P. R. Shaver, and L. S. Wrightsman, vol. 1, 37-41. New York: Academic Press, Inc.
50. Penman, S. H. 2003. The quality of financial statements: Perspectives from the recent stock market bubble. Accounting Horizons 17 (Supplement): 77-96.
51. Peterson, C. M., and M. E. P. Seligman. 2003. Positive organizational studies: Lessons from positive psychology. In Positive Organizational Scholarship, eds. K. S. Cameron, J. E. Dutton, and R. E. Quinn, 14-28. San Francisco: Berrett-Koehler.
52. Piron, R., and L. Fernandez. 1995. Are fairness constraints on profit-seeking important? Journal of Economic Psychology 16 (1): 73-97.
53. Ponemon, L. and D. Gabhart. 1993. Ethical reasoning in accounting and auditing. Research monograph no. 21, CGA-Canada Research Foundation. Vancouver: CGA-Canada.
54. Rabin, M. 1993. Incorporating fairness into game theory and economics. American Economic Review 83 (5): 1281-302.
55. Randall, M. F., and D. M. Fernandes. 1992. Social desirability bias in ethics research. Business Ethics Quarterly 2 (2): 183-205.
56. Ratner, R. K., and D. T. Miller. 2001. The norm of self interest and its effects on social action. Journal of Personality and Social Psychology 81 (1): 5-16.
57. Reiter, S. 1996. The Kohlberg-Gilligan controversy: Lessons for accounting ethics education. Critical Perspectives in Accounting 7 (1): 33-54.
58. Reiter, S. 1998. Beyond Kohlberg: Expanding the focus of research on accounting ethics. Working paper, Binghamton University.
59. Rest, J. 1979a. Defining issues test. Minneapolis, MN: University of Minnesota.
60. Rest, J. 1979b. Development in judging moral issues. Minneapolis, MN: University of Minnesota.
61. Rest, J. 1986. DIT manual. Minneapolis, MN: University of Minnesota.
62. Rest, J., and D. Narvaez. 1994. Moral development in the professions: Psychology and applied ethics. Hillsdale, NJ: Lawrence Erlbaum.
63. Rest, J., and D. Narvaez. 1998. Guide for DIT-2. Minneapolis, MN: Center for the Study of Ethical Development.
64. Rutledge, R. and K. Karim. 1999. The influence of self-interest and ethical considerations on managers' evaluation judgments. Accounting, Organizations and Society 24 (2): 173-84.
65. Salter, S., and D. Sharp. 2001. Agency effects and escalation of commitment: Do small national culture differences matter? International Journal of Accounting 36 (1): 33-45.
66. Simons, R. 1995. Levers of control: How managers use innovative control systems to drive strategic renewal. Cambridge, MA: Harvard Business School Press.
67. Stevens, D. E. 2002. The effect of reputation and ethics on budgetary slack. Journal of Management Accounting Research 14(1): 153-71.
68. Thoma, S. 1994. Moral judgments and moral action. In Moral Developments in the Professions, eds. J. Rest and D. Narvaez, 199-211. Hillsdale, NJ: Lawrence Erlbaum.
69. Thorne, L. 2000. The development of two measures to assess accountant's prescriptive and deliberative moral reasoning. Behavioral Research in Accounting 12 (1): 139-70.
70. Welbourne, T. M., D. B. Balkin, and L. R. Gomez-Mejia. 1995. Gainsharing and mutual monitoring: A combined agency-organizational justice interpretation. Academy of Management Journal 38 (3): 881-99.
71. Wentzel, K. 2002. The influence of fairness perceptions and goal commitments on managers' performance in a budget setting. Behavioral Research in Accounting 14 (1): 247-72.