Ethics in Entrepreneurial Finance: Exploring Problems in Venture Partner Entry and Exit

Fassin, Yves; Drover, Will

doi:10.1007/s10551-015-2873-0

Cited by 26 publications

(20 citation statements)

References 93 publications

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“…In the specific context of nascent ventures, when entrepreneurs engage with investors and prospective customers, informational asymmetries arise which can facilitate deception (Fassin and Drover 2017;Kriss et al 2013). For example, entrepreneurs might understand more about a specific technology and its benefits or may have insights into the market that they choose not to share with stakeholders.…”

Section: The Unique Context Of Early-stage Venturesmentioning

confidence: 99%

“…Nonetheless, a financial power asymmetry may also exist when potential financiers (e.g., angel investors, VCs), have considerably more financial leverage than the new venture entrepreneurs they are evaluating. This financial power asymmetry further strains the entrepreneur-stakeholder relationship, making entrepreneurs potentially experience high levels of tension in maintaining control of the narrative (Fassin and Drover 2017). At a time when entrepreneurs lack legitimacy, information asymmetries and a financial power differential create a conducive environment for entrepreneurs to deceive.…”

Section: The Unique Context Of Early-stage Venturesmentioning

confidence: 99%

“…Our second contribution is that our approach addresses the call for examining entrepreneurial ethics (Brenkert 2009;Harris et al 2009;Rutherford et al 2009), especially with regard to new venture financing (Fassin and Drover 2017). As there is very little in the literature with respect to the mechanisms that enable entrepreneurial lying (Bryant 2009;McVea 2009), drawing on the extant research that focuses on unethical decision-making can improve our understanding in such environments (Treviño et al 2014).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Going Down the Slippery Slope of Legitimacy Lies in Early-Stage Ventures: The Role of Moral Disengagement

2020

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It would seem, on the surface, logical that entrepreneurs would treat stakeholders with honesty and respect. However, this is not always the case-at times, entrepreneurs lie to stakeholders in order to take a step closer to achieving legitimacy. It is these legitimacy lies that are the focus of the current work. Overall, while we know that legitimacy lies are told, we know very little about the psychological processes at work that may make it more likely for someone to tell a legitimacy lie. Thus, we theorize about the pressure to pursue legitimacy, the situational and individual factors that affect this pursuit, as well as how this context can lead to moral disengagement and the telling of legitimacy lies. Our theorizing advances the existing literature and provides a dynamic framework by which future research can delve more deeply into the nuanced context that breeds the escalation of legitimacy lies.

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Section: The Unique Context Of Early-stage Venturesmentioning

confidence: 99%

Section: The Unique Context Of Early-stage Venturesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Going Down the Slippery Slope of Legitimacy Lies in Early-Stage Ventures: The Role of Moral Disengagement

2020

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“…They suggest that their proposal can be extremely useful in detecting manipulators and can be employed by a wide range of users of accounting information including stock exchange supervisors or investment professionals. Fassin and Drover (2015) highlights the moral dimension inherent in the entry and exit of venture partners and the importance of considering moral judgement, as well as intentions in decision-making. Using twelve vignettes, they look at the asymmetries between entrepreneurs and investors and discusses a set of ethical problems that arise among key actors concerning the dynamics of venture partner entry and exit, applying a multiple-lens ethical perspective to analyze these issues.…”

Section: Misbehaviors In Accounting and Financementioning

confidence: 99%

Ethics in Finance and Accounting: Editorial Introduction

2016

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In light of the recent crisis and its aftershocks, it becomes crucial to reflect on the relationship between finance and accounting and on how to integrate ethics and efficiency, as well as on how to motivate and empower practitioners in the world of finance to commit to justice, fairness and enhanced understanding, and to improving their personal integrity. This article, written as an editorial introduction to a special issue includes works related to control measurement and ethical behavior, misbehaviors in finances and accounting, professionalism in accounting, ethical investing and corporate reporting. We conclude by suggesting further research for a better integration of technical aspects of accounting and finances into business activity-human activity actually-and an for understanding of ethics not limited to rules, but as a mutual and interdependent system of values (human goods), virtues and principles.

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“…Islam motivates all members of a society to work for the establishment of truthful and equitable system through ethical guidance. Therefore, integration of ethics in finance demonstrates that ethical approach and decent governance go beyond the compliance of the law (Fassin, and Drover, 2017). The standards setting bodies also need to be given power of effective enforcement to avoid manipulated financial statements.…”

Section: Truthful Reportingmentioning

confidence: 99%

An Alternative Model in Financial Reporting to Reduce Flaws and Injustice with Stakeholders

Akhtar¹,

Ahmed²,

Gul³

et al. 2019

J. Islam. bus. manag.

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Seemingly, a formidable ethical challenge to financial reporting is the phenomenon of fallacious and discretional financial reporting as currently in practice. Such untruthful reporting intensified during the first decade of the 21st century when many of the personnel got involved to increase their personal benefits and the result was a wide-spread financial fiasco in the form of MCI WorldCom, Enron, Well Fargo, and Tesco accounting scandal, to mention a few. Most of the scandals were cause by false reporting, withholding information about financial troubles, revenue and earnings inflation, discretional revenue and expense recognition, use of off-balance-sheet items, artificial increase of cash flow and profits, backdating of sales contracts and accounting for vendors allowances and financing. The research in hand is an attempt to discuss such issues in the light of ethical and moral values that are not only recommended teachings of Islam, but also accepted business ethics in the civilized world. Islamic ethical guidelines for business encompass discipline and rules as enjoined in the divine sources of Sharī'ah -Qur'ān and Sunnah (sayings of or the approved actions by the holy Prophet Muhammad PBUH). Implementation of these guidelines to make financial reporting ethical should be acceptable to the entire world, at personal, organizational, and society levels for broad based benefits of the mankind.

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Ethics in Entrepreneurial Finance: Exploring Problems in Venture Partner Entry and Exit

Cited by 26 publications

References 93 publications

Going Down the Slippery Slope of Legitimacy Lies in Early-Stage Ventures: The Role of Moral Disengagement

Going Down the Slippery Slope of Legitimacy Lies in Early-Stage Ventures: The Role of Moral Disengagement

Ethics in Finance and Accounting: Editorial Introduction

An Alternative Model in Financial Reporting to Reduce Flaws and Injustice with Stakeholders

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