Factors influencing ethical judgements of accounting practitioners: some Malaysian evidence

Abstract

PurposeThe purpose of this paper is to examine the extent to which demographic factors and corporate ethical value impact on ethical decisions of Malaysian accounting practitioners.Design/methodology/approachA questionnaire survey was carried out to elicit opinions from accounting practitioners on corporate ethical values and ethical judgements. Regression analysis was performed on 201 completed and useable questionnaires.FindingsThe regression analysis shows that corporate ethical value is a significant factor determining ethical judgements. Age is also a significant factor, with older accounting practitioners being stricter in their ethical stance. To a lesser extent, gender is also significant, with females exhibiting higher ethical judgements than males.Research limitations/implicationsThe regression model reports an adjusted R-squared of 19.2%, which suggests further work in this area is necessary to identify other determinants for (un)ethical judgements. A qualitative approach such as interviewing corporate players may shed light on other possible factors.Practical implicationsThe findings suggest that regulatory efforts have contributed towards a more ethically imbued corporate environment. The Malaysian Code on Corporate Governance (2012), which recommends corporations to have formalized ethical standards and women on corporate boards, appears to have positive influence on creating a more ethical working climate. In addition, the enactment of the Minimum Retirement Age Act (2012) also proves relevant in further promoting ethical judgements.Originality/valueThe study highlights the applicability of the theory of moral development to an Asian developing country, and that gender, age and corporate ethical values are complementary in influencing ethical judgements of accounting practitioners in Malaysia.

Valores éticos asociados a la civilidad fiscal en empresas públicas

“…No se encontraron estudios en países de Europa y Latinoamérica (ver Cuadro 1). Este resultado, podría relacionarse con lo expuesto por Mohd (2021), quien expone que el Código de Gobierno Corporativo de Malasia recomienda a las empresas el cumpliendo de estándares éticos formalizados para instaurar los valores éticos determinantes para el comportamiento, las decisiones y los juicios éticos de los profesionales contables en las organizaciones, de allí que exista un gran interés por investigar los valores y la cultura ética organizacional para evitar fraudes tributarios.…”

Ethical dilemma: A pathway to fraud or not?

“…On the other hand, some studies found that plain-looking male accountants, who represent the traditional accountant stereotype, rarely behave unethically (Shtudiner & Klein, 2020). Ghazali (2021) found that corporate ethical values determine ethical judgement as well as the age of the accountant. This author found that older accounting practitioner is stricter in considering ethical stance.…”

Gauging the ethical sensitivity of accounting students: the effect of money attitudes

“…In response to this call, several studies (Abdelhak, 2019;Adekoya et al, 2020;Mohd Ghazali, 2021;Mustapha and Nadaraja, 2014;Nadaraja and Mustapha, 2017;Odar et al, 2017;West and Buckby, 2020) have in the past examined issues concerning ethical judgement and conduct of accounting professionals. In part, most of these studies have been motivated by the fact that several of the accounting scandals have occurred due to non-observance of ethical standards on the part of accountants.…”