The Role of Ethical Leadership Versus Institutional Constraints: A Simulation Study of Financial Misreporting by CEOs

Aguilera, R. V. and G. Jackson: 2003, ‘The Cross-National Diversity of Corporate Governance: Dimensions and Determinants’, Academy of Management Review 28 (3), 447–465. Anderson, P.: 1999, ‘Complexity Theory and Organization Science’, Organization Science 10 (3), 216-232. Andvig, J.C. and K.O. Moene: 1990, ‘How Corruption May Corrupt’, Journal of Economic Behavior and Organization 13, 63-76. Aschheim, S.E.: 1994, The Nietzsche Legacy in Germany 1890 – 1990 (University of California Press, Berkeley). Aycan, Z., R.N. Kanungo, M.Mendonca, K. Yu, J. Deller, G. Stahl and A. Kurshid: 2000, ‘Impact of Culture on Human Resource Management Practices: A 10-country Comparison’, Applied Psychology: An International Review 49 (1), 192-221. Bandura, A.: 1977, Social Learning Theory (Prentice-Hall: Englewood Cliffs, NJ). Becker, G.S.: 1968, ‘Crime and punishment: an economic approach’, Journal of Political Economy 76, 169–217. Blumstein, A., J. Cohen & D.P. Farrington: 2006, ‘Criminal career research: its value for criminology’, Criminology 26 (1), 1-35. Boyer, M.M. and H. Ortiz-Molina: 2008, ‘Career Concerns of Top Executives, Managerial Ownership and CEO's Succession’, Corporate Governance 16 (3), 178-193. Bragues, G.: 2008, ‘The Ancients against the Moderns: Focusing on the Character of Corporate Leaders’, Journal of Business Ethics 78, 373–387. Brown, M.E. and L.K. Treviño: 2006, ‘Ethical leadership: A review and future directions’, The Leadership Quarterly 17, 595–616. Brown, M. E., L.K. Treviño and D. Harrison: 2005, ‘Ethical leadership: A social learning perspective for construct development and testing’, Organizational Behavior and Human Decision Processes 97, 117 − 134. Bruderer, E., & J.S. Singh: 1996, ‘Organizational evolution, learning, and selection: A genetic-algorithm-based model’, Academy of Management Journal 39, 1322–1349. Burns, J. M.: 1978, Leadership (Harper & Row: New York). Burns, N. and Kedia, S.: 2006, ‘The impact of performance-based compensation on misreporting’, Journal of Financial Economics 79, 35–67. Burton, R.M. and B. Obel: 1995, ‘The Validity of Computational Models in Organization Science: From Model Realism to Purpose of the Model’, Computational and Mathematical Organization Theory 1 (1), 57-71. Bushman, R.M and J.D. Piotroski: 2006, ‘Financial reporting incentives for conservative accounting: The influence of legal and political institutions’, Journal of Accounting and Economics 42, 107–148. Carson, T.L.: 2003, ‘Self–Interest and Business Ethics: Some Lessons of the Recent Corporate Scandals’, Journal of Business Ethics 43 (4), 389-394. Chen, S., Bouvain, P.: 2009, ‘Is Corporate Responsibility Converging? A Comparison of Corporate Responsibility Reporting in the USA, UK, Australia, and Germany’, Journal of Business Ethics 87, 299-317. Chen, J.C., D. Patten and R.W. Roberts: 2008, ‘Corporate Charitable Contributions: A Corporate Social Performance or Legitimacy Strategy’, Journal of Business Ethics 82, 131-144. Cohen, M. D., J.G. March & J.P. Olsen: 1972, ‘A garbage can model of organizational choice’, Administrative Science Quarterly 17, 1–25. Conger, J.: 1990, ‘The dark side of leadership’, Organizational Dynamics 19, 44-55. Conyon, M.J. and K.J. Murphy: 2000, ‘The Prince and the Pauper: CEO Pay in the United States and United Kingdom’, Economic Journal 110, 640-671. Davis, J.P., K.M. Eisenhardt and C.B. Bingham: 2007, ‘Developing Theory Through Simulation Methods’, Academy of Management Review 32 (2), 480–499. Davis, J.H. and J.A. Ruhe: 2003, ‘Perceptions of Country Corruption: Antecedents and Outcomes’, Journal of Business Ethics 43, 275–288. Den Niuewenboer, N.A. & M. Kaptein: 2007, ‘Spiraling Down into Corruption: A Dynamic Analysis of the Social Identity Processes that Cause Corruption in Organizations to Grow’, Journal of Business Ethics 83, 133-146. Doris, J: 2002, Lack of Character: Personality and Moral Behavior (New York: Cambridge University Press). Efendi, J., A. Srivastava and E.P. Swanson, E.P.: 2007, ‘Why do corporate managers misstate financial statements? The role of option compensation and other factors’, Journal of Financial Economics 85, 667–708. Ellis, H.: 1898, ‘Auto-Eroticism: A Psychological Study’, Alienist and Neurologist 19, 260–299 Emmons, R.: 1981. ‘Relationship between narcissism and sensation seeking’, Psychological Reports 48 (1), 247-250. Erev, I., T.S. Wallsten & D.V. Budescu: 1994, ‘Simultaneous over- and underconfidence: The role of error in judgment processes’, Psychological Review 101, 519–528. Fama, E.: 1980, ‘Agency problems and the theory of the firm’, Journal of Political Economy 88, 288-307. Farwell, L., and R. Wohlwend-Lloyd: 1998, ‘Narcissistic processes: optimistic expectations, favorable self-evaluations, and self-enhancing attribution’, Journal of Personality 66, 65–83. Feld, L.P. and B.S. Frey: 2007, ‘Tax Compliance as the Result of a Psychological Tax Contract: The Role of Incentives and Responsive Regulation’, Law & Policy 29 (1), 102-120. Fogarty, T., M.I. Magnan, G. Markarian and S. Bohdjalian, S.: 2009, ‘Inside Agency: The Rise and Fall of Nortel’, Journal of Business Ethics 84, 165–187. Forrester, J.: 1961, Industrial dynamics, (MIT Press Cambridge, MA). Freud, S.: 1957, ‘On Narcissism: An Introduction’, in J. Strachey (ed. & trans.), The Standard Edition of the Complete Psychological Works of Sigmund Freud, Vol. 14 (Hogarth Press, London), pp. 67–104. Getz, K.A. and Volkema, R.J.: 2001, ‘Culture, Perceived Corruption and Economics: A Model of Predictors and Outcomes’, Business and Society 40, 7-30. Harman, G.: 2003, ‘No Character or Personality’, Business Ethics Quarterly 13 (1), 87-94. Harrison, J.R., Z. Lin, G.R. Carroll and K.M. Carley: 2007, ‘Simulation Modeling in Organizational and Management Research’, Academy Of Management Review 32 (4), 1229–1245. Hayward, M.L.A, V.P. Rindova and T.G. Pollock: 2004, ‘Believing One’s Own Press: The Causes and Consequences of CEO ego’, Strategic Management Journal 25, 637–653. Hodgson, G.M. and Jiang, S.: 2007, ‘The Economics of Corruption and the Corruption of Economics: An Institutionalist Perspective’, Journal of Economic Issues 61 (4), 1043-1061. Hofstede, G.: 1980, Culture’s Consequences: International Differences in Work Related Values (Sage Publications,Beverly Hills, CA). Jensen, M. and W. Meckling: 1976, ‘Theory of firm: managerial behavior, agency costs and ownership structure’, Journal of Financial Economics 3, 305–360. Kaplan, S. N.: 2008, ‘Are U.S. CEOs overpaid?’, Academy of Management Perspectives 22(2), 5–20. Kets de Vries, M.: 2003, Leaders, Fools and Impostors: Essays on the Psychology of Leadership (revised edition) (iUniverse, New York). Knights, D. & M. O’Leary: 2006, ‘Leadership, Ethics and Responsibility to the Other’, Journal of Business Ethics 67, 125-137. Koopman, P.L., D. N. Den Hartog, E. Konrad et al.: 1999, ‘National Culture and Leadership Profiles in Europe: Some Results From the GLOBE Study’, European Journal of Work and Organizational Psychology 8 (4), 503–520. Kruger, J., & Dunning, D.: 1999, ‘Unskilled and unaware of it: How difficulties in recognizing one’s own incompetence lead to inflated self-assessments’, Journal of Personality and Social Psychology 77, 1121-1134. Larrick, R. P.: 1993, ‘Motivational factors in decision theories: The role of self-protection’, Psychological Bulletin 113, 440–450. Leuz, C., D. Nanda and P.D. Wysocki: 2003, ‘Investor Protection and Earnings Management: An International Comparison’, Journal of Financial Economics 69, 505-527. Levinthal, D.: 1991, ‘Random walks and organizational mortality’, Administrative Science Quarterly 36, 397–420. Li, J., J. Moy, K. Lam and W.L.C. Chu: 2008, ‘Institutional Pillars and Corruption at the Societal Level’, Journal of Business Ethics 83, 327-339. Lomi, A., & E.R. Larsen: 1996, ‘Interacting locally and evolving globally: A computational approach to the dynamics of organizational populations’, Academy of Management Journal 39, 1287–1321. Mac Intyre, A.: 1991, After Virtue (Duckworth: London). March, J. G.: 1991, ‘Exploration and exploitation in organizational learning’, Organization Science 2, 71–87. Matten, D. and Moon, J.: 2008, “Implicit” And “Explicit” CSR: A Conceptual Framework For A Comparative Understanding Of Corporate Social Responsibility’, Academy of Management Review 33 (2), 404–424. Milgram, S.: 1974, Obedience to Authority (Harper Collins: New York). Miller, H. and K.J. Engemann: 2004, ‘A Simulation Model of Intergroup Conflict’, Journal of Business Ethics 50, 355-367. Mocan, N.: 2008, ‘What determines corruption? International evidence from microdata’, Economic Inquiry 46(4), 493–510. Morrell, K.: 2004, ‘Socratic Dialogue as a Tool for Teaching Business Ethics’, Journal of Business Ethics 53, 383-392. Morris, J.A., C.M. Brotheridge and J.C. Urbanski: 2005, ‘Bringing humility to leadership: Antecedents and consequences of leader humility’, Human Relations 58, 1323-1350. Morrison, A.: 2001, ‘Integrity and Global Leadership’, Journal of Business Ethics 31, 65–76. Norberg, P.: 2009, ‘I don’t Care that People don’t Like What I Do – Business Codes Viewed as Invisible or Visible Restrictions’, Journal of Business Ethics 86, 211-225. Ono, H.: 2007, ‘Careers in Foreign-owned Firms in Japan’, American Sociological Review 72, 267-290. Park, H., M.T. Rehg and D. Lee: 2005, ‘The Influence of Confucian Ethics and Collectivism on Whistleblowing Intentions: A Study of South Korean Public Employees’, Journal of Business Ethics 58 (4), 387-403. Perel, M.: 2003, ‘An Ethical Perspective on CEO Compensation’, Journal of Business Ethics 48, 381-391. Pozner, J.E.: 2008, ‘Stigma and Settling Up: An Integrated Approach to the Consequences of Organizational Misconduct for Organizational Elites’, Journal of Business Ethics 80, 141–150. Reinstein, A., S.R. Moehrle and J. Reynolds-Moehrle, J.: 2006, ‘Crime and punishment in the marketplace: Accountants and business executives repeating history’, Managerial Auditing Journal 21 (4), 420-435. Resick, C.J., P.J. Hanges, M.W. Dickson and J.K. Mitchelson: 2006, ‘A Cross-Cultural Examination of the Endorsement of Ethical Leadership’, Journal of Business Ethics 63, 345–359. Robertson, D.C.: 1993, ‘Empiricism in Business Ethics: Suggested Research Directions’, Journal of Business Ethics 12 (8), 585-599. Rudolph, J. and N. Repenning: 2002, ‘Disaster dynamics: Understanding the role of quantity in organizational collapse’, Administrative Science Quarterly 47, 1–30. Schwartz, H.S: 1991, ‘Narcissism Project and Corporate Decay: The Case of General Motors’, Business Ethics Quarterly 1 (3), 249-268. Scott, W. R.: 1995, Institutions and Organizations (Sage Publications, Thousand Oaks, CA) Semadeni, M., A.A. Cannella, D.R. Fraser and D.S. Lee: 2008, ‘Fight or flight: managing stigma in executive careers’, Strategic Management Journal 29, 557–567. Sims, R.R. and J. Brinkmann: 2003, ‘Enron Ethics (Or: Culture Matters More than Codes)’, Journal of Business Ethics 45, 243–256. Soll, J. B.: 1996, ‘Determinants of overconfidence and miscalibration: The roles of random error and ecological structure’, Organizational Behavior and Human Decision Processes 65, 117–137. Solomon, R.C.: 2003, ‘Victims of Circumstances? A Defense of Virtue Ethics in Business’, Business Ethics Quarterly 13 (1), 43-62. Sterman, J.: 2000, Business dynamics: Systems thinking and modeling for a complex world (Irwin McGraw-Hill: New York). Street, M.D., C. Robertson and S.W. Geiger: 1997, ‘Ethical Decision Making: The Effects of Escalating Commitment’, Journal of Business Ethics 16, 1153–1161. Suchman, M.C.: 1995, ‘Managing Legitimacy: Strategic and Institutional Approaches’, Academy of Management Review 20 (3), 571-610. Tavakoli, A.A., J.P. Keenan and B. Crnjak-Karanovic: 2003, ‘Culture and Whistleblowing: An Empirical Study of Croatian and United States Managers Utilizing Hofstede’s Cultural Dimensions’, Journal of Business Ethics 43, 49–64. Taylor, E. Z. and M. B. Curtis: 2010, ‘An Examination of the Layers of Workplace Influences in Ethical Judgments: Whistleblowing Likelihood and Perseverance in Public Accounting’, Journal of Business Ethics 93, 21–37. Treisman, D.: 2000, ‘The causes of corruption: a cross-national study’, Journal of Public Economics 76, 399–457. Trevor-Roberts, E., N. M. Ashkanasy and J. C. Kennedy: 2003, ‘The Egalitarian Leader: A Comparison of Leadership in Australia and New Zealand’, Asia Pacific Journal of Management 20, 517–540 Wagner-Tsukumoto, S.: 2005, ‘An Economic Approach to Business Ethics: Moral Agency of the Firm and the Enabling and Constraining Effects of Economic Institutions and Interactions in a Market Economy’, Journal of Business Ethics 60, 75-89. Waldman, D.A., M.S. de Luque, N. Washburn, R.J. House et al.: 2006, ‘Cultural and leadership predictors of corporate social responsibility values of top management: a GLOBE study of 15 countries’, Journal of International Business Studies 37, 823–837. Wallace, H. M., & R.F. Baumeister: 2002, ‘The performance of narcissists rises and falls with perceived opportunity for glory’, Journal of Personality and Social Psychology 82, 819–834. Watson, G.W., R.E. Freeman & B. Parmar: 2007,’Connected Moral Agency in Organizational Ethics’, Journal of Business Ethics 81, 323-341. Zhang, X., K.M. Bartol, K.G. Smith, M.D. Pfarrer and D.M. Khanin: 2008, ‘CEOs on the Edge: Earnings Manipulation and Stock-Based Incentive Misalignment’, Academy of Management Journal 51 (2), 241–258. Zyglidopoulos, S.C., P.J. Fleming and S. Rothenberg: 2009, ‘Rationalization, Overcompensation and the Escalation of Corruption in Organizations’, Journal of Business Ethics 84, 65–73.