@inbook{783e35b22b944ce887cff82f3ca8d679,
title = "THE EFFECT OF DELEGATION, MORAL JUSTIFICATION, AND ETHICAL CLIMATE ON MISREPORTING: A STUDY OF THE FINANCIAL SERVICES SECTOR",
abstract = "This study examines the effect of delegation of decision rights, moral justification (MJ), and ethical climate (EC) on managers{\textquoteright} misreporting in the financial services sector. We employed an online research panel called Qualtrics, to collect data based on a sample of 127 middle-level managers from various US financial services firms. We find that MJ mediates the relation between delegation and misreporting, suggesting delegation of decision rights increases employees{\textquoteright} misreporting indirectly by increasing MJ. We also find that EC significantly moderates the relationship between MJ and misreporting. Furthermore, our test of the moderated-mediation effect reveals that the indirect effect of the delegation of decision rights on misreporting through MJ is stronger when there is a higher level of instrumental climate (IC) and a lower level of principle climate (PC).",
keywords = "Delegation of decision rights, ethical climate, instrumental climate, moral justification, principle climatemisreporting, rationalization",
author = "Chong, {Vincent K.} and Wang, {Isabel Z.} and Monroe, {Gary S.}",
note = "Publisher Copyright: {\textcopyright} 2024 by Vincent K. Chong, Isabel Z. Wang and Gary S. Monroe.",
year = "2024",
month = sep,
day = "6",
doi = "10.1108/S1474-787120240000036005",
language = "English",
isbn = "978-1-83608-489-1",
series = "Advances in Management Accounting",
publisher = "Emerald Group Publishing Limited",
pages = "109--144",
editor = "Chris Akroyd",
booktitle = "Advances in Management Accounting",
address = "United Kingdom",
edition = "1",
}