The impact of perceived ethical intensity on audit-quality-threatening behaviours

Although there has been significant interest among researchers in audit-quality-threatening behaviours (QTBs), the decision process through which staff auditors engage in those behaviours has received relatively little attention. It seems likely that the ethical intensity of the behaviours perceived by auditors may play an important role in that process; to date, this has not been tested. This study examines the mediating role of perceived ethical intensity in the relationship between perceived ethical culture of the firm and the auditors' ethical evaluation of, and intention to engage in, three different forms of QTBs. A multi-item measure of ethical intensity is developed and the findings provide the first empirical evidence of a direct relationship between perceived ethical intensity and ethical decision-making regarding QTBs. Moreover, the findings show that perceived ethical intensity fully mediates the relationship between perceived ethical culture and ethical decision-making. Implications of the findings for accounting firms and for researchers are discussed and areas for future research on the mediating role of perceived ethical intensity are suggested in the paper.     

An analysis of trading strategies in eleven European stock markets

Abstract

In recent years, the validity of the weak form efficient market hypothesis (EMH) has been called into question as several studies have uncovered evidence that technical trading rules have predictive ability with respect to both developed and emerging stock market indices. This study analyses the forecasting power of 2 of the most popular trading rules using index data for a selection of 11 European stock markets over the January 1991 to December 2000 period. The findings indicate that the emerging markets included in this paper are informationally inefficient; these markets displayed some degree of predictability in their share returns, although the developed markets did not. Furthermore, the results point to large differences in the performance of the rules examined; while small size filters consistently outperformed the buy-and-hold strategy in the emerging markets examined even after the consideration of transaction costs, the performance of the moving average rules was erratic and varied dramatically from market to market.     

Ethical beliefs of MIS professionals: The frequency and opportunity for unethical behavior

The frequency and opportunity for unethical behavior by MIS professionals is examined empirically. In addition, the importance of top management's ethical stance, one's sense of social responsibility and the existence of codes of ethics in determining perceptions of the frequency and opportunity for unethical behavior are tested.Results indicate that MIS professionals are perceived as having the opportunity to engage in unethical practices, but that they seldom do so. Additionally, successful MIS professionals are perceived as ethical. Finally, while company codes of ethics were uncommon, top management was seen as supporting high ethical standards. Scott J. Vitell is an Assistant Professor of Marketing at the University of Mississippi. His publications have appeared in the Journal of Macromarketing, the Journal of Business Ethics, Research in Marketing, various national and regional proceedings, and elsewhere. Donald L. Davis is Associate Professor and Director of Management Information Systems Programs in the School of Business at The University of Mississippi. He has published in OMEGA, Journal of Operations Management, Human Systems Management and other journals. His current research interests are in user-system interfaces in DSS, expert systems, and nueral nets.