Does ethical leadership enhance group learning behavior? Examining the mediating influence of group ethical conduct,justice climate,and peer justice

The link between ethical leadership and employees' ethical behaviors is well established, but are ethical leadership's benefits confined to ethical behaviors? This study aimed to address this question by examining the extent to which ethical leaders create an environment conducive to cultivating a broader set of desirable behaviors such as group learning behavior. We drew upon and integrated insights from social learning theory and the social marketplace model to develop and test a model that illuminates how ethical leadership enhances group learning behavior. We propose that group ethical conduct, justice climate, and peer justice are three contextual mechanisms through which ethical leadership improves group learning. Using data collected over two time periods from 95 supervisors and 323 work group members from a large financial institution in the United States, we found that ethical leadership significantly relates to group learning behavior, and that this relationship is partially explained by group ethical conduct and peer justice, but not justice climate. Implications for future research and practice are discussed.     

Can corporate codes of ethics influence behavior?

There is increasing public interest in understanding the nature of corporate ethics due to the knowledge that unethical decisions and activities frequently undermine the performance and abilities of many organizations. Of the current literature found on the topic of ways organizations can influence ethical behavior, a majority is found on the issue of corporate codes of ethics.Most discussions on codes of ethics evaluate the contents of the codes and offer opinions on their wording, content, and/or value. Unfortunately, very little research has been devoted towards discovering whether they are effective in promoting ethical decision-making behavior. Thus, due to the lack of empirical research on this particular topic, this paper attempts to further address this issue.Data was obtained through the use of a fifteen-item questionnaire, in which seven of the items were scenarios on the topic of ethical behavior, and the remaining eight questions were concerned with demographic information. The survey was administered to 150 business students at a large university.The results indicated that corporate codes of ethics are not influential in determining a person's ethical decision-making behavior.     

Does air pollution influence investor trading behavior? Evidence from China

Building on the research linking environmental factors to investor mood, we posit that there is a negative relation between air pollution and individual trading strategies. Through an analysis of unique individual transaction data, our results show that air pollution negatively influences individual investors' propensity to buy and positively influences investors' propensity to sell. We find obvious heterogeneity effects across different investor, stock and city characteristics. The effects are even larger for investors with less investment experience and for those living in heavily polluted cities. This study is crucial for establishing an association between air pollution and individual trading activities.     

“How does customer perception of salespeople influence the relationship? A study in an emerging economy”

Sales and sales force management is a complex activity that largely determines a company's commercial success. Customer perception of the salespeople in terms of expertise, trust, interaction, and risk can drive the establishment of long-lasting ties, making customer portfolio management profitable in the long-term. Yet to date, while much work has been done on company-customer relational issues, very few studies have taken customer perception of salespeople as their reference. Moreover, most existing studies have taken western countries and developed economies as their reference of analysis.The present study, in contrast, provides an analysis of an emerging economy context, Peru. Using a sample of more than 400 consumers and structural equations analysis, this article presents a model based on the Social Exchange Theory. The final part of the study presents the theoretical discussion together with key implications and recommendations for management.     

Does religion influence location choice in the hotel industry?

Relying on data from the Spanish hotel industry, this paper analyzes the role of informal institutional factors (IIF) in location choice. Earlier studies mostly use an aggregate level of cultural differences as informal institutional factors. We, however, go deeper into this concept and study the impact of two distinct but interrelated informal institutional factors, religion and language, on the location decisions of hotel chains. We resolve the overlapping problem between these two highly correlated IIF by means of a ‘layer’ measurement in Confirmatory Factor Analysis. Our results show that the higher the informal institutional differences (IID), the lower the presence of the hotels in the foreign country. While physical distance plays a key moderating role, formal institutional differences (FID) did not show any effect. We contribute by unravelling the role of language and religion in location choice in the internationalization process of service firms. Moreover, we test the moderating role of formal institutions in these decisions, thus combining the impact of formal and informal institutions on location choices in service firms.     

Does customer sex influence the relationship between perceived quality and share of wallet?

This study examines the within and between sex differences on the relative importances of merchandise quality and interaction quality as drivers of behavioral loyalty (share of wallet). A sample of customers of a national retail chain serves as the study setting. The results indicate that for female customers, interaction quality and merchandise quality have equally strong total influence on share of wallet. For male customers, the total effect of merchandise quality on share of wallet is significantly stronger than the total effect of interaction quality. Across sex comparisons reveal that the total effect of interaction quality on share of wallet is stronger for female customers. However, merchandise quality exerts a stronger total influence on share of wallet for male customers. Implications of the results are discussed and avenues for future research are offered.     

Does food advertising influence children’s food choices? A critical review of some of the recent literature

Food advertising to children is an issue that is at the centre of debate and the purpose of this paper is to critically examine the claims and the evidence. Several issues are examined: the child’s understanding of advertising, the content of advertising to children; food choices in families, children’s food choice and behaviour, and the effect of advertising on food choice. Major conclusions are the following: that children understand the function of advertising from the age of 8–9 years, although there are limitations on how effectively they apply this knowledge; that the content of advertising to children has remained relatively unchanged for 25 years; that children play an active role in food choice in families; that children’s dietary preferences and habits are well-established before advertising is understood; and that advertising’s role in children’s food choices and preferences is multi-factorial and complex.     

Does lower-stage ethical reasoning emerge in more familiar contexts?

Four real-life dilemma cases collected from Hong Kong managers were included, along with two other cases previously used by Weber (1991), in an instrument designed to assess ethical reasoning capacity. This was completed by 86 part-time post-graduate students, all of whom were managers with at least four years working experience. Respondents' measured ethical reasoning capacity appeared to be at least as high as comparable samples in the U.S.A. The mean ethical reasoning stage varied between cases. Contrary to expectations, the unfamiliarityper se of a case did not affect ethical reasoning which instead tended toward higher measured stages when issues of public hazard or environmental pollution were introduced, and toward lower measured stages where personal or family finances were at stake. Two methodological points were made signalling the need for caution in research of this kind. First, because of reservations about the adequacy of the standard Kohlbergian model of ethical reasoning development, a scoring guide based on a revised Kohlbergian model of ethical reasoning was used to analyze the replies, rendering comparisons with other samples inexact. Second, the possible phenomenon of quasi Stage Five reasoning renders problematic the identification of true Stage Five ethical reasoning.Robin Snell directs the M.B.A. at the City University of Hong Kong, where he is University Senior Lecturer. He has editedManagement Learning and has published articles inPersonnel Review on experiential learning, moral dilemmas and management development. His book,Developing Skills for Ethical Management, synthesizes these interests.     

Lost in translation: Exploring the ethical consumer intention–behavior gap

Ethical consumerism is a burgeoning movement, yet ethically-minded consumers rarely purchase ethically. Understanding obstacles to ethical consumption is limited. This study explores the underlying mechanics of the ethical purchase intention–behavior gap in the context of consumers' daily lives. The study employs multiple qualitative methods across multiple sites, explores the intention–behavior gap in observed modes of shopping behavior, and uses an interpretive approach. The analysis reveals four interrelated factors affecting the ethical intention–behavior gap: (1) prioritization of ethical concerns; (2) formation of plans/habits; (3) willingness to commit and sacrifice; and (4) modes of shopping behavior. Awareness of these four factors provides both strategic and tactical implications for marketing managers seeking to reach the elusive ethical consumer. Understanding and enhancing ethical consumption – closing the gap – has positive outcomes for the future sustainability of economies, societies and environments.     

Does the devil wear Prada? Luxury product experiences can affect prosocial behavior

Despite the explosive growth of luxury consumption, researchers have yet to examine how the experience of using luxury products affects us both psychologically and behaviorally. In this research, we explore how the experience of using a luxury product can alter a user's perceptions of themselves and their behavior toward other people. We gave women either a luxury product (e.g., Prada handbag) or a non-luxury product (e.g., unbranded handbag) to use, and afterwards, we presented women with opportunities to exhibit either selfish or generous behaviors toward others. We found that, after using a luxury product, women exhibited more selfish behavior, such as sharing fewer resources with others and contributing less money to charity than women who used a non-luxury handbag. We also found this pattern can be reversed, with luxury users exhibiting more generous behavior when the generous behavior can be performed in front of other people. Further, we show that these patterns of selfish and generous behaviors are mediated by changes in perceived status and superiority that are triggered when women experience using a luxury product.     

Does mutual fund investment influence accounting fraud?

Does mutual fund investment deter accounting fraud? Using a bivariate probit model, this study examines the relationship between mutual funds and accounting fraud between 2007 and 2014. We observed mutual fund investment has significantly higher levels of fraud detection, reducing firms' propensity to commit fraud. This validates Chinese regulators' efforts to develop mutual funds to address accounting fraud. Open-end mutual funds outperform closed-end mutual funds in detecting accounting fraud and reducing fraud commission; redeemable shares appear to discipline managers. This effect is moderated by state ownership of listed firms: mutual funds cannot effectively detect fraud in state-owned firms.     

How do cultural values influence entrepreneurial behavior of nations? A behavioral reasoning approach

Despite an abundance of research, still there is a gap in understanding the underlying cultural mechanisms behind entrepreneurial behavior of nations in the literature. This study contributes to the debate through a new perspective of analysis based on behavioral reasoning theory (BRT). Specifically, this research analyses the role cultural values play in formation of the reasoning behind entrepreneurial behavior. The data and variables are taken from the GLOBE project and the Global Entrepreneurship Monitor (GEM) for a multiple regression analysis spanning from 2007 to 2017 for 50 countries. The results show that, with the exception of Institutional Collectivism, all of GLOBE’s cultural dimensions affect the reasoning justifications behind entrepreneurial intentions in various countries. Thus, the novel contribution of the present research is the application of BRT in explaining entrepreneurial intentions. This contribution is substantial to the international entrepreneurship field through clarification of the role of cultural values in the reasoning processes behind entrepreneurial activities of nations. Some findings are surprising with regard to the conventional understandings. These findings are fully discussed in the concluding sections.     

Is transparency a good thing? How online price transparency and variability can benefit firms and influence consumer decision making

The internet has empowered consumers and changed the way they search and shop for products and services by increasing the availability and transparency of pricing and other comparative information. However, what is less clear from a managerial perspective is just how transparent pricing information should be. While it might seem that increasing price transparency would reduce consumer search, we find that it may actually increase search and delay. In this article, we review the use of firms’ application of price transparency in practice and propose that specific types of information can influence how transparent prices are to consumers, and how such transparency can influence consumer decisions in a way that is beneficial for the firm. We focus on a specific form of transparency: whether or not the consumer knows the range of pricing. We also discuss whether a high variability pricing approach versus a low variability pricing approach influences consumer decision making—and whether this influence is moderated by transparency.     

How digital platforms influence luxury purchase behavior in India?

In an emerging country such as India, consumers are tech savvy and connect easily with digital media platforms. They use these platforms even for luxury purchases. However, there have been only a few conceptual papers on this process. Therefore, this study aims to explain how digital platforms influence consumers’ decision for luxury brands in India. Two qualitative studies were conducted with young Indian consumers as they are the heaviest users of digital platforms and the most frequent purchasers of luxury brands. The first study consisted of 156 respondents in 15 focus groups in four major Indian cities. The second was made up of 95 on-site customer observations in 18 retail luxury stores and 45 consumers’ interviews. These data were further validated by 32 interviews with luxury brand managers and retail managers We found and developed a cyclical framework that projects digital media influences on Indian consumers at all the phases of purchase, i.e., pre-purchase is digital and hedonic, purchase is experiential and enjoyable while digital media is used and post-purchase is based on aspirations, lifestyles and virtual networks. More importantly, these consumers are always connected to reference groups digitally who significantly affect their purchase behavior and subsequent brand choices.     

Only the lonely? The influence of the spouse on the transition to self-employment

Previous research showed that married individuals are overrepresented among the self-employed. Few studies proposed skill-spillover between the spouses within the marriage as an explanation. This paper deviates from the previous research by exploring different relationship contexts (e.g., cohabitation, being married or divorced, a widow(er) or single) and the role of partner influences under these contexts. It argues that the interaction between gender and relationship status implies variation in not only resources but also constraints, and hence sorts individuals into two different types of self-employment: entrepreneurial self-employment (i.e., incorporated business) and unincorporated self-employment. Using “Panel Study of Income Dynamics (PSID) 1965–2005” data, results of the competing risk models show that marital status contributes to both types of self-employment transitions, especially for men, but also for women. Cohabitation is a less supportive context for entrepreneurship and a partner’s self-employment experience increases only women’s likelihood of entering into entrepreneurship. These results suggest that skill-spillover between partners might be context dependent and only in one direction (from men to women).     

Does trade globalization induce or inhibit corporate transparency? Unbundling the growth potential and product market competition channels

Trade globalization may affect corporate transparency via multiple channels, with potentially opposite signs. We aim to empirically disentangle these channels by tracking evolution of corporate transparency for 4061 listed firms in tradable sectors in 49 countries during 1992–2005. By using detailed tariff schedules, we measure changes in growth opportunities and product market competition enabled by foreign and domestic trade liberalizations, respectively. On the one hand, higher growth opportunities engendered by foreign trade reforms are disproportionately associated with better corporate transparency in industries that depend more heavily on external financing. On the other hand, greater product market competition engendered by domestic tariff reductions has no significant impact on corporate transparency.     

Examining the influence of cultural and ethical ideology on consumers’ perceptions about the ethics of online retailers and its effects on their loyalty

The main purpose of this study was to develop and empirically test an integrated model that examines the antecedents and outcomes of consumers perceptions regarding online retailing ethics. A quantitative approach was utilised and the data were collected from 797 consumers. We used AMOS 22.0 for assessing the associations between the latent variables. The results of the analyses revealed that uncertainty avoidance and power distance are a key driver of idealism, while masculinity and individualism are a key predictor of egoism. Idealism was negatively related to consumers perceptions about e-retailing ethics, while egoism had a positive effect. Finally, customers perceptions about e-retailing ethics was positively related to customers loyalty. Implications for practitioners and academics were discussed.     

Does the inflation rate affect the performance of the stock market? The case of Egypt

The intention of this paper is to examine the impact of the inflation rate on the performance of the Egyptian stock market. Particular attention is paid to the effects of the rate of inflation on various stock market performance variables, in terms of market activity and market liquidity. From the co-integration analysis through error correction mechanisms (ECM), significant long-run and short-run relationships between the variables are found, implying that the inflation rate has had an impact upon the Egyptian stock market performance generally.     

Does the law and finance hypothesis pass the test of history?

For the body of work known as the law and finance literature, the development of financial markets and the concentration of ownership across countries is to a large extent the consequence of the legal system nations created or inherited decades or hundreds of years ago. Despite the seemingly historical nature of this explanation, most of the body of work supporting the law and finance hypothesis has been ahistorical. This paper summarises the business history literature and provides evidence on investor protection and financial development over the long run that challenges the main tenets of the law and finance literature.