The role of ethical leadership versus institutional constraints: a simulation study of financial misreporting by CEOs

Title: The role of ethical leadership versus institutional constraints: a simulation study of financial misreporting by CEOs
Creator: Chen, Stephen
Relation: Journal of Business Ethics Vol. 93, Issue Suppl. 1, p. 33-52
Publisher Link: http://dx.doi.org/10.1007/s10551-010-0625-8
Publisher: Springer Netherlands
Resource Type: journal article
Date: 2010
Description: This article examines the proposition that a major cause of the major financial accounting scandals that received much publicity around the world was unethical leadership in the companies and compares the role of unethical leaders in a variety of scenarios. Through the use of computer simulation models, it shows how a combination of CEO's narcissism, financial incentive, shareholders' expectations and subordinate silence as well as CEO's dishonesty can do much to explain some of the findings highlighted in recent high profile financial accounting scandals. Furthermore, it shows that the nature and impact of ethical leadership depends greatly on the institutional setting and can be expected to vary greatly by country and culture. In certain circumstances ethical leadership can have either a negligible or even opposite effect to that expected.
Subject: CEO’s narcissism; computer simulation; ethical leadership; financial incentives; financial misreporting
Identifier: http://hdl.handle.net/1959.13/1058240
Identifier: uon:16366
Identifier: ISSN:0167-4544
Language: eng
Reviewed

		Thumbnail	File	Description	Size	Format