Jou nal o Economics, Business, and Accoun ancy Ven u a Vol. 18, No. 1, Ap il 2015, pages 133 – 144
133
Does an e hic ma e o p edic mis epo ing beha io ?
Asca yan Ra inda1, T iani A o ah2, Rasyid Mei Mus a a3, Halomoan Ompusunggu4
1, 2, 3, 4 Uni e si y o Jende al Soedi man, P o . H.R. Boenyamin S ee No. 708, Pu woke o, 53122, Cen e Ja a,
Indonesia
A R T I C L E I N F O
A icle his o y:
Recei ed 21 Feb ua y 2015
Re ised 24 Ma ch 2015
Accep ed 11 Ap il 2015
JEL Classi ica ion:
M19
Key wo ds:
Mo al Reasoning,
Si ua ional Fac o s,
In en ion o F aud Repo ing,
Expe imen al Design.
DOI:
10.14414/jeba . 18i1.389
A B S T R A C T
This s udy was conduc ed o e i y he asse ions o a ious p e ious s udies examining
he ela ionship be ween indi idual mo al easoning and e hical beha io . Those s udies
conclude ha indi iduals wi h good mo al easoning end o beha e be e . Howe e ,
hey do no conside si ua ional ac o s ha can change his indi idual beha io . This
s udy a emp s o conside si ua ional ac o s linked o he indi idual as an eceden s o
une hical beha io . Si ua ional ac o s a e aken in o accoun o e i ying whe he an
indi idual wi h high mo al easoning in a si ua ion ha suppo s une hical ac ions will
be ac ing une hically. The da a we e aken by expe imen al me hods 2 × 1 be ween he
subjec s whe e he manipula ion is by posi i e and nega i e ea men gi en o see he
e ec agains hei in en ions o do aud. The le el o mo al easoning is measu ed using
a es ins umen which de ines he issue o ca ego izing he pa icipan s wi h high
mo ale and low mo ale. Di e ence- - es was pe o med o in es iga e he di e ences
be ween he wo g oups expe imen al. I shows ha si ua ional ac o s a e hings ha
can a ec a pe son's e hical o une hical ac ega dless o hei mo al easoning abili ies.
The implica ion is ha o minimize he une hical beha io o employees, he company can
ocus on si ua ional ac o s a he han indi idual mo al.
A B S T R A K
Peneli ian ini mem e i ikasi pendapa be bagai peneli ian e dahulu yang menguji
ke e kai an an a a penala an mo al indi idu dengan pe ilaku e isnya. Hasilmya me-
nunjukkan bahwa indi idu dengan penala an mo al baik akan cende ung be pe ilaku
baik. Namun, s udi e sebu idak mempe imbangkan ak o si uasional yang dapa
mengubah pe ilaku indi idu. Peneli ian ini mempe imbangkan ak o si uasional di
seki a indi idu sebagai an eseden da i pe ilaku idak e is. Fak o si uasional dipe -
imbangkan un uk melakukan e i ikasi apakah indi idu dengan penala an mo al
inggi namun dalam si uasi yang mendukung melakukan indakan idak e is akan
menjadi be indak idak e is. Da a dipe oleh dengan me oda ekspe imen al 2 × 1 be-
ween subjec di mana manipulasi be upa pe lakuan posi i dan pe lakuan nega i
dibe ikan un uk meliha e eknya e hadap nia an melakukan kecu angan. Tingka
penala an mo al diuku menggunakan ins umen de ining issue es un uk mengka e-
go ikan pa isipan dengan mo al inggi dan mo al endah. Uji beda - es un uk men-
guji pe bedaan an a a dua kelompok ekspe imen al. Hasilnya menunjukkan bahwa
ak o si uasional me upakan hal yang dapa mempenga uhi seseo ang be indak e is
a au idak e is anpa mempedulikan kemampuan penala an mo alnya. Implikasinnya,
bagi o ganisasi yang ingin meminimalisasi pe ilaku idak e is ka yawannya, dapa
be okus kepada ak o si uasional dibandingkan mo al indi idu.
1. INTRODUCTION
A s udy by Kaplan (2001) analyzed he e hical
iews o sha eholde s and hose o non-
sha eholde s o he ea nings managemen beha io
in he company. The s udy es ed he e hical iew
on e en s ha had occu ed. The s udy did no
iden i y a igge o an e en (an eceden ). In con-
as o esea ch Liyana achchi and Newdick
(2009), his examines indi idual mo al easoning as
an eceden s in he endency doing whis le blowing.
Using a le el o mo al easoning, he an eceden s o
e hical beha io a e in es iga ed by Abdol Mo-
* Co esponding au ho , email add ess: 1 asca yan. a [email protected].
Asca yan Ra inda: Does an e hic ma e …
134
hammadi and Sul an (2002); Ponemon and College
(1992). Bo h o hese s udies ound ha di e en
le els o mo al easoning end o p oduce di e en
beha io s when aced wi h e hical dilemmas condi-
ion. Ano he esea ch by Xu and Ziegen uss (2008);
Uddin and Gille (2002) e ealed ha indi iduals
who ha e high mo al easoning would end o be-
ha e e hically and ice e sa.
Some p e ious s udies ound ha indi iduals
in he condi ion a ac ing hem o commi aud
also end o commi aud (Day, Hudson, Ro ol,
and Robe , 2011). Si ua ional ac o s a ec he be-
ha io o indi iduals [Day e al. (2011); Mi chell
(1997); McCabe, T e ino, and Bu e ield (2001);
and Michaels and Mie he (1989)]. Ano he wo s u-
dies used si ua ional ac o s such as he au ho i y o
supe io s and social condi ions sepa a ely, i.e.
Mayhew and Mu phy (2008), who in es iga ed he
e ec o he social condi ions on he endency o
indi iduals o commi aud. As epo ed by May-
hew and Mu phy (2014) ha he e ec o supe io
au ho i y on commi ing epo ing audulen be-
ha io . Si ua ional ac o s a e known o ha e a -
ac ing ole in in luencing indi idual in en ion o
do audulence. This s udy aims o es he p oposi-
ion, exp essing ha “indi idual wi h high mo al
easoning would end o beha e e hically". Besides
ha , i es s whe he he p oposi ion is s ill alid
when he en i onmen a ound indi idual suppo
o une hical beha io . The posi i e o manipula-
ion ea men is gi en o pa icipan s expe imen .
Posi i e manipula ion is gi en when an indi idual
is in he condi ion suppo ed o ac une hically. In
con as o he nega i e manipula ion, i also mani-
pula es indi idual no o do audulence. The p ob-
lem unde lying his s udy is due o many p e ious
s udies o iden i y he an eceden s o une hical be-
ha io in pa ial o m o indi idual ac o s alone o
si ua ional ac o s alone.
Again, his s udy conside s bo h ac o s o de-
e mine which is mo e powe ul in p edic ing he
beha io o he epo ing aud. The esea ch ques-
ion o be answe ed is "whe he indi iduals who
ha e high mo al easoning s ill beha e e hically
when he su ounding en i onmen conduci e o
beha e une hically. This s udy is impo an because
o mo al easoning and i es s he p oposi ion by
conside ing en i onmen al ac o s su ounding he
indi idual.
The pu pose o his s udy is o iden i y and
quan i y he ole o si ua ional ac o s in manipula-
ion o measu e he endency o indi idual in en-
ion o do inancial epo ing audulence and also
es s he s eng h o p oposi ions in a s a e o mo al
easoning wi h ce ain si ua ional ac o s. I also
inden i ies he ac o s and p edic s he mo e powe -
ul indi idual in en ion o commi epo ing aud.
Thus, an o ganiza ion can ocus on one o he o he
because i can p e en he eme gence o indi idual
in en ion o commi epo ing aud. This s udy
con ibu es o wo olds: (1) he iden i ica ion o one
o he s onge ac o a ec ing he in en ions o
indi iduals owa ds epo ing aud. By doing his,
i can con ibu es posi i ely o he educ ion beha-
io o indi iduals epo ing aud (2) Con ibu e o
he e iew o he li e a u e on he ela ionship be-
ween he indi idual mo al beha io o being e hi-
cal o conside si ua ional ac o s a ound him.
2. THEORETICAL FRAMEWORK AND HYPO-
THESIS
F audulen Financial Repo ing
F audulen inancial epo ing is one o he ca ego-
ies o aud based on he associa ion o ce i ied
aud examine s (ACFE). Some scena ios o indi-
iduals o pe o m audulen inancial epo ing
by Single on e al. (2006) a e as ollows:
(1) The ime di e ence be ween he ime o he
ansac ion eco ds o ansac ions and he eco d-
ing ime. This scena io is o en ound in ansac ion
cos s o wi hd awal delays in eco ding sales ans-
ac ions o he coming pe iod. This can dec ease o
inc ease i s p o i .
(2) Fac ious ansac ions commonly occu in he
case o ac ual sales ansac ions in which i does no
ac ually occu , bu he company no es and admi i .
(3) Hiding he company deb . The echnique o
audulen inancial epo ing is done by delaying
he lis ing o co po a e deb o o alloca e ansac-
ions ha gi e ise o a deb in he company o he
sub company. The hiding deb companies can mi-
nimize he appea ance o he cos o epaymen o
deb and can imp o e he appea ance o he com-
pany balance shee .
(4) Incomple e disclosu e ha is he main way
people commi aud epo ing and accoun ing he
mos comple ely. The elemen s a e o en conside ed
o ha e a subs an ial isk a e he company cos and
deb .
(5) Assessing he in alid asse s ha also become
one o he echniques o inc ease he asse s o he
company. No ing he long- e m ixed asse s and
in en o ies a e bo h a isk o audulen inancial
epo ing o he same ex en .
Theo y o Planned Beha io
Planned beha io model de eloped by he p e ious
p oponen s Ajzen and Fishbein (1980) can be said
Jou nal o Economics, Business, and Accoun ancy Ven u a Vol. 18, No. 1, Ap il 2015, pages 133 – 144
135
ha a planned beha io is a esponse o he weak-
nesses e ealed by a ious s udies ha use he ac-
ion easoning model conduc ed by Ajzen and
Fishbein (1980) p e iously. Model easoning o
ac ion is based on he assump ion ha an indi idu-
al pe o ms an ac ion on a olun a y basis shows
ha he model is a om eali y because he as-
sump ion is ha i oo impo an as i is no o be
measu ed in he esea ch model. Fo example, Da-
is, Dezoo , and Kopp (2006) ound an indi idual
o p ac ice budge a y p oc as ina ion is no olun-
a y, bu due o he p essu e om his uppe le el.
Planned beha io model desc ibes he beha-
io o a pe son's in en ion o beha e is in luenced
by h ee ac o s such as i s ly, he us ac o and
in e nal e alua ion o an ac ion which is hen la-
beled as a i ude owa d he beha io . Secondly, i
is in luenced by he neighbo hood's social iew-
poin in assessing an indi idual's beha io , consis -
ing o no ma i e belie s and mo i a ion o ollow
he beha io (mo i a ion o comply). The hi d is an
ex ension o answe he weakness ac o assump-
ions in he model o ac ion easoning ha is in lu-
enced by he pe cep ion o beha io al con ol (Pe -
cei ed con ol beha io ) which de ines he indi id-
ual's abili y o exe cise con ol o e such beha io .
This ac o is shaped up by he abili y o con ol
o e beha io (con ol beha io ) and pe cep ion
acili ies owned by indi iduals o e his beha io .
The beha io owa d any beha io can a ec
an indi idual's in en ions o pe o m ha beha io .
The mo e posi i e a i ude is o med on a beha io ,
he highe he endency o indi idual in en ion o
pe o m ha beha io . In addi ion, subjec i e
no ms es ablished by colleagues, amily and col-
leagues will a ec he beha io o indi iduals wi h
opinions abou indi idual beha io which will be
pe o med. The sugges ion on his beha io can be
ei he suppo ed o p ohibi ed by he en i onmen
owa d indi idual beha io will be pe o med. The
mo e posi i e he suppo o indi idual social en i-
onmen , he mo e he is o lead o in en ion o do i .
The easie he beha io al con ol ela ed o pe -
cei ed ease o indi iduals o delay he p olong cos .
The ease ela ed o an indi idual's abili y o con ol
he ac o s can lead o ailu e o he posi i e pe cep-
ion beha io . The e o e, he easie he con ol o e
he beha io o indi iduals is due o he pe cep ion
in execu ing i s beha io . The mo e easily pe cei ed
beha io al con ol makes i highe because o p o-
c as ina ing he cos is also easy o do.
Mo al Reasoning
Kohlbe g in 1955 de ines and alida es he longi u-
dinal and c oss-cul u al le els o mo al easoning
de eloped by Dewey and Piage (Kohlbe g 1975).
Kohlbe g (1955) classi ies indi idual basic eason-
ing o an e en whe he i is conside ed e hical o
une hical in h ee le els. The i s le el is p econ-
en ion in which a hese s age indi iduals beha e
e hically because hey don’ wan o be punished
and o bene i hemsel es o such beha io . The
second le el is called he con en ional, i.e. when
indi iduals beha e e hically because i is desi ed
socially accep able in he en i onmen o an
ag eemen ha has es ablished no ms wi hin a
g oup. The hi d le el is called pos -con en ional,
i.e. when indi iduals beha e e hically because i
ollows he p inciple o pe sonal e hic and ollow-
ing he uni e sally accep ed p inciples.
The highe he indi idual unde s ands he
mo al, he highe i s le el o mo ale. Indi iduals
who ha e high mo al unde s anding will end o
beha e e hically as hey may conside a ious al-
e na i e ac ions (e hical-une hical), because hey
a e aced wi h si ua ions ha pose e hical dilem-
mas. Resea ch by Liyana achchi and Newdick
(2009) es ed he indi idual mo al easoning as an-
eceden s and i s in luence in deciding whis le
blowing. Abdolmohammadi and Sul an (2002) and
he Ponemon and College (1992) ound ha di e -
en le els o mo al easoning would end o p o-
duce di e en beha io when aced wi h condi ions
ha gi e ise o e hical dilemmas. I is also like he
s udy by Uddin and Gille (2002) and Xu and Zie-
gen uss (2008) who e ealed ha indi iduals who
ha e high mo al easoning would end o beha e
e hically and ice e sa.
Mo eo e , McCabe e al. (2001) ound ha de-
spi e indi idual and si ua ional ac o s can a ec
he beha io o chea ing, bu he si ua ional ac o s
ha e a s onge e ec on he beha io o chea ing.
Fo example, Michaels and Mie he (1989) e ealed
ha he si ua ional ac o s a ec he beha io o
s uden s o chea ing in schools mo e han indi id-
ual ac o s. In his case, Mi chell (1997) ound ha
en i onmen al ac o s mo e s ongly a ec indi id-
ual beha io . Mi chell (1997) ound ha pa ici-
pan s ha e indi idual ac o s such as in eg i y and
high e hical awa eness would no e ec i ely a ec
he beha io o e hical decision when en i onmen-
al suppo o une hical beha io . This shows si u-
a ional ac o s can be e p edic he beha io o
chea ing han indi idual ac o s.
Thus, he hypo hesis can be asse ed as ollows:
H1: Si ua ional ac o s ha e be e p edic i e abili y
compa ed o indi idual ac o s owa ds he in en-
ion o commi aud epo ing.
Asca yan Ra inda: Does an e hic ma e …
136
3. RESEARCH METHOD
Da a Collec ion
The da a we e collec ed by he expe imen al me-
hod o de e mine he causal ela ionship be ween
he cons uc s as p epa ed in he esea ch model.
Ano he ad an age o he expe imen is ha i can
maximize he ea men o he pa icipan s so ha
esea che s ha e mo e con idence ha he pa ici-
pan s will ha e an unde s anding o wha is de-
si ed by he esea che .
The cases we e a anged e y speci ically e-
la ed o he beha io o aud in inancial epo ing.
Posi i e and nega i e ea men was p epa ed by
modi ying and syn hesizing measu emen s o such
s udies (Ki & Chang 1998), (Gille & Uddin 2005),
(Ca pen e & Reime s 2005). The ea men was
done on a i udes, subjec i e no ms, and pe cei ed
con ol o e beha io . Th ee cons uc s ha make
up he in en ions o indi iduals ea ed in he o m
o us is posi i e (nega i e), suppo (obs uc ion),
pe cep ion o con olling he beha io o high (low)
as ollows:
(1) The a i ude o he indi idual is gi en a ea men
wice in he o m o posi i e and nega i e a i udes
ha a e o med by posi i e and nega i e belie s.
Posi i e belie is gi en by he posi i e impac o he
beha io o he cos eco ding delay in he nex pe-
iod. Nega i e belie is gi en by a nega i e impac
on he beha io o he cos eco ding delay.
(2) The indi idual's subjec i e no m is gi en wo
ea men s in he o m o subjec i e no m posi i e
and suppo i e ea men delay o he cos s. This is
ins ead subjec i e no ms ha a e blocking he nega-
i e cos delay ea men .
(3) The pe cep ion o con ol o e he beha io o
indi iduals is gi en wo ea men s ha con ol he
pe cep ion o high and low pe cep ion o con ol
o e he beha io o he delay in eco ding he cos
accoun ing.
The sample was aken om he inal le el S1
(unde g adua e) accoun ing depa men in Sudi -
man Uni e si y, Pu woke o. This is due o he ac
ha his sample has no been oo o en used in ex-
pe imen al esea ch pa icipan s. The eason o
using he inal yea s uden s is ha i is expec ed
ha hey a e mo e ma u e in emo ional de elop-
men . In o he wo ds, i is expec ed o be close o
he emo ional ma u i y o a inancial accoun an .
The assump ion in his s udy is indi idual a ional
and sel -in e es .
Ope a ional De ini ion and Measu emen o Va-
iables
The dependen a iable is he in en ion o beha e.
In en ion o beha e is indi idually measu ed wi h
he ques ion "Do you in end o pos pone he e-
co ding o cos s in 2011 o he yea 2012?". Beside,
he esea che s used a Like scale o 1 o 9 o
measu e he in en ion o aud epo ing by he
indi iduals.
Independen a iables consis o a le el o
mo al easoning and ea men o pa icipan s. The
pa icipan s ge posi i e and nega i e ea men o
h ee aspec s ha can be a ec ed by he in en ion o
beha e such as a i ude, subjec i e no m and pe -
cei ed beha io al con ol. The pa icipan s' le el o
mo al easoning is sepa a ely measu ed and i is
no an expe imen al ea men in he s udy.
A i ude
Indi idual a i udes owa d audulen inancial
epo ing a e es ablished by he indi iduals’ us
ha hey o med. Posi i e belie desc ibes indi id-
uals in belie ing o delay he cos eco ding and
his will ha e a posi i e impac on he company
and he indi iduals hemsel es. Nega i e belie
desc ibes indi iduals o delaying he cos eco d-
ing ha will ha e a nega i e impac on he compa-
ny and he indi iduals hemsel es. The a i ude
was manipula ed by p o iding iews on he posi-
i e and nega i e e ec s o cos eco ding delay.
Subjec i e No m
Subjec i e no m owa ds audulen inancial e-
po ing is shaped by social ci cums ances o he
indi iduals. Thei colleagues and amily desc ibe
he suppo o ban on an indi idual. The beha io s
by pee s and colleagues who suppo indi iduals o
delay he cos eco ding can inc ease an indi idu-
al's in en ion o delay ha cos eco ding. O he -
wise, he ban can educe he in en ion o delay he
cos eco ding.
Pe cep ion o Beha io al Con ol
Pe cep ion o beha io al con ol is shaped up by an
indi idual's abili y o con ol his beha io on he
basis o ex e nal ac o s. The highe he pe cep ion
o con ol o e he beha io will inc ease he in en-
ion o delay he cos eco ding. The pe cep ion o
con ol o e he beha io o indi iduals can be
measu ed by he ex en o ease o delay he cos
eco ding. Thus, he mo e people pe cei e he be-
ha io o he cos eco ding delay ha is easy o do
and o con ol, he highe he indi idual's in en-
ions o delay he cos eco ding.
The Le el o Mo al Reasoning
Res (1999) de eloped ins umen s o de ining
Jou nal o Economics, Business, and Accoun ancy Ven u a Vol. 18, No. 1, Ap il 2015, pages 133 – 144
137
issues es (DIT) ha is o measu e he le el o indi-
idual mo al easoning. The es o such alidi y is
o he wo ypes such as De ining Issues Tes (DIT).
DIT1 and DIT2 es ed on 200 s uden s a ou di -
e en s ages o educa ion, namely: 1) S uden s in
g ade nine, 2) Pa icipan s who had jus g adua ed
om high school and only a ew weeks becoming
he s uden s, 3) S uden s o inal yea and 4) pos -
g adua e s uden s o p o essional p og ams. DIT2
has wo di e ences compa ed DIT1. The i s di -
e ence, i is he ewe he numbe o cases in he
o m o : 1) " amine", 2) " epo e ", 3) "school boa d",
4) "cance ", and 5) "demons a ion". Second, DIT1 is
measu ed using p-sco e while DIT2 using N2.
The esul s indica e ha DIT2 has highe alid-
i y han DIT1. Al hough he esul s showed a mo e
alidi y, he gene aliza ion o DIT2 ins umen had
o be e i ied because o he new es ed agains 200
s uden s and being disp opo iona e when com-
pa ed wi h DIT1 which has been used by hund eds
o esea che s wi h a o al sample o app oxima ely
500,000 pa icipan s. On he basis o his s udy us-
ing an ins umen ha has been alida ed by hun-
d eds o esea che s o measu e he indi idual's
mo al de elopmen is DIT1.
This s udy uses h ee scena ios ha is he sho
o m o he DIT1. This is done wi h no expec a ion
o educing he concen a ion o he pa icipan s
du ing he expe imen . Acco ding o Res (1986) he
ime equi ed o comple e he six scena ios is abou
30-40 minu es, while he sho o m equi es 20-30
minu es. Time is oo long o wo y abou he ask
ha educes he le el o concen a ion and se ious-
ness o he s uden s du ing he expe imen . This is
an icipa ed in his s udy o mo i a e pa icipan s
wi h speci ic incen i es o unde s and and wo k on
DIT ins umen ca e ully and p ecisely.
Th ee scena ios we e de eloped by Res (1986)
ha is he sho o m, namely: 1) Heinz and he
D ugs, 2) he Escaped P isone , and 3) he News-
pape . Each scena io is ollowed by 12 pa icipan s’
s a emen o conside a ion in making decisions on
DIT. The ins umen scena ios we e de eloped by
Res (1986) and his can measu e a pe son's p oxim-
i y o he mo al le el o he hi d le el (pos -
con en ional). Thus, he close o he hi d le el
indica es he highe le el o mo al easoning.
The pa icipan classi ica ion was measu ed us-
ing he DIT le el o mo al easoning based on he
p-sco e (pos -con en ional sco e). The sho o m
has a co ela ion o 0.93 wi h he ins umen ha
uses six scena ios DIT (Res , 1986). I shows he
o m o sho o m has p ope ies simila o he
o m o he six scena ios (Res , 1986). The classi ica-
ion o pa icipan s o be included in he ca ego y o
low le el and high mo ale was done by using he
median o middle alue o he p-sco e se by Res
(1986) as a heo e ical limi .
Expe imen al P ocedu e
By using design 2 × 1 be ween subjec , he pa ici-
pan s we e gi en wo ea men s: (1) posi i e
ea men and (2) he nega i e ea men . Pa ici-
pan s we e di ided in o wo dis inc classes, one
class o ge a posi i e ea men , he second class
ge nega i e ea men as shown in Table 1.
The se ies o expe imen al p ocedu es a e a -
anged so ha pa icipan s ge ea men as ex-
pec ed by he esea che s. Expe imen al p ocedu e
begins wi h an explana ion o he expe imen al
p ocedu e which should be done by he pa ici-
pan s such as illing in he shee o willingness o
pa icipa e and he explana ion abou he leng h o
ime o he pa icipan s. The expe imen s we e
conduc ed in wo sessions, he i s s age; each pa -
icipan go an en elope in which i has measu e-
men o mo al easoning. The pa icipan s we e
asked o ill ou and answe in acco dance o he
ins uc ions p o ided in he ins umen . Thei ea-
soning was measu ed so ha hey can be classi ied
in wo expe imen al sessions.
The class was di ided in o wo g oup o ca y
ou he second session o he expe imen . The
second expe imen was conduc ed o measu e hei
in en o commi aud epo ing. They we e gi en
an en elope con aining cases ha ha e a posi i e
a i ude, subjec i e o nega i e no m, and posi i e
pe cep ion o beha io al con ol o e he beha io
o audulen inancial epo ing. In he second
class, hey we e gi en speci ic case p o iding a
nega i e a i ude, subjec i e no m, and pe cei ed
con ol o nega i e beha io . They should unde -
s and he ques ions asked in he en elope. Then,
hey we e asked o ill ou a ques ion in he i s
en elope any ime when i was al eady ead and
unde s ood.
Tes ing he Hypo hesis
As his s udy uses a sample o he popula ion hy-
po hesis, he s a is ical es ing needs o p o ide a
le el o con idence ha can be accep ed by he pub-
lic. The hypo hesis was es ed using di e en - es s
Table 1
The Design o Resea ch Expe imen
T ea men s
Mo al Reasoning
Posi i e manipula ion
Cell 1
Nega i e manipula ion
Cell 2

Asca yan Ra inda: Does an e hic ma e …
138
o de e mine di e ences in he esponse o in en-
ion o pe o m audulen inancial epo ing gi en
o he indi iduals. The hypo hesis was es ed by
compa ing he p edic ion o he e o be ween he
si ua ional ac o s and indi idual ac o s. Indi idu-
al ac o s a e in he si ua ion o suppo he aud
epo ing in which hey should in end o commi
epo ing aud. Fo example, i disco e e ’s he e
is no one in en o commi epo ing aud, he e -
o p edic ion is ound, as well as indi idual ac o s
o he o he way a ound.
Fo mo al easoning, he indi iduals wi h high
mo al easoning should no commi epo ing
aud. When indi iduals a e ound wi h a high
le el o mo al easoning bu epo ing doing au-
dulence, hen i is iden i ied as an e o p edic ion
o indi idual ac o s such as he le el o mo al ea-
soning. Then, he p edic ion e o o bo h ac o s is
done o ind ac o s which a e mo e dominan in
a ec ing indi idual in en ion o commi epo ing
aud. The design o answe ing he hypo hesis can
be shown in Table 2.
When Table 2 is o mula ed in ma hema ical
analysis, i can be shown in Table 3.
4. DATA ANALYSIS AND DISCUSSION
The da a wi h he me hod o he expe imen s con-
duc ed in he i s wo sessions. The i s session
was conduc ed o measu e he pa icipan s' le el
o mo al easoning on he case gi en a he ime o
he second expe imen . The second one was con-
duc ed o measu e in en o commi epo ing
aud by he pa icipan s. The i s session and he
second session we e done in di e en imes be-
cause he pa icipan s in he i s session we e
iden i ied o ha e high mo ale and hey we e
mixed wi h he pa icipan s who had low mo ale
in he class oom.
Howe e , in he second expe imen session,
he class pa icipan s ha ha e a high le el o mo -
al easoning and he low one we e simul aneously
iden i ied and analyzed wi h he same case. By
mixing a class o pa icipan s who ha e wo le els
o mo al easoning le els, he esul s o measu ing
ins umen s o indi idual epo ing audulen in-
en ion can be alid o pa icipan s who ha e di -
e en le els o easoning go he same ea men .
The same ea men was done o minimize po en-
ial dis up ions a ise and could h ea en he alidi-
y o he esea ch model. Ha ing he same place
and ime when he second session was done is con-
side ed o ein o ce ha his esea ch is ee om
he h ea o ma u i y ha could po en ially a ise in
expe imen al esea ch.
Table 2
Design o Answe ing he Hypo hesis
Hypo hesis Is Answe ed By The Fi s Requi emen :
Si ua ional Fac o s ound o be e
p edic he in en ion o commi
epo ing aud i he ollowing
wo condi ions a e me :
In en ion o commi epo ing aud,
cell 1 >2, and
he numbe o pa icipan s who in end
o commi aud (JKP) cell 1 > 2
Indi idual ac o s we e ound o be
s ongly o in luence he in en ion
o commi epo ing aud i he
ollowing wo condi ions a e me
In en ion o epo ing aud, he
pa icipan wi h high mo al easoning
a e lowe han compa ed o hose wi h
low mo al easoning le el (NKP_PM-
highe < NKP_PM-low, and
The numbe o pa icipan s who in end
o commi epo ing aud (JKP) a high
PM ewe han he numbe o
pa icipan s epo ing aud a low PM.
(JKP_PM-heigh <JKP_PM low)
Hypo hesis Is Answe ed By he Requi emen s:
I bo h ac o s a e me all o e en no me a all, hen he hypo hesis is answe ed by compa ing he p edic ed ailu e
a e o si ua ional ac o s and indi idual ac o s on he in en ion o commi ing epo ing aud by measu ing e o
p edic ion on bo h ac o s in he ollowing way
Si ua ional ac o s ha e mo e in luence han indi idual
ac o s when e o p edic ion o JKP on indi idual ac o s
(E_PRED_IND) is highe han e o p edic ion JKP on
si ua ional ac o s (E_PRED_SIT)
Indi idual ac o s ha e mo e in luence han si ua ional
ac o s when e o p edic ion JKP on si ua ional ac o s
(E_PRED_SIT) is highe han e o p edic ion JKP on
indi idual ac o s (E_PRED_IND).
Table 3
Design o Second Hypo hesis Fo mula
Fi s Requi emen s
Al e na i e Condi ion
Si ua ional ac o s a e s onge han
when
NKP cel 1> NKP cell 2
JKP cell 1> JKP cell 2
E_PRED_IND > E_PRED_SIT
Indi idual ac o s a e s onge han he
Si ua ional ac o s when
NKP_HPM < NKP_LPM
JKP_HPM < JKP_LPM
E_PRED_IND < E_PRED_SIT
Jou nal o Economics, Business, and Accoun ancy Ven u a Vol. 18, No. 1, Ap il 2015, pages 133 – 144
139
Pilo Tes
Be o e conduc ing he ac ual expe imen , he expe-
imen al eam o h ee people in he o m o e-
sea ch and ield, he e we e wo people who con-
duc ed he pilo ins umen expe imen on July 11,
2014 a 15:00. This was done in wo sessions. The
i s session was conduc ed o measu e he le el o
mo al easoning o he pa icipan s. The second
session was conduc ed o measu e he in en ion o
epo ing aud commi ed by he pa icipan s. This
pilo es was pe o med o make he expe imen al
eam amilia wi h he du ies and esponsibili ies
and he e alua ion o he expe imen al p ocedu es
as well as he ins umen s o be used.
Twen y- i e s uden s majo ing in accoun ing a
he end o he le el ollowed he pilo es s. The
esul s o he expe imen al es pilo a e as ollows:
(1) pa icipan s wi h easy o unde s and manipula-
ion gi en in he expe imen , (2) he expe imen al
eam unde s and and app ecia e he expe imen al
p ocedu e o be pe o med as well as he du ies
and esponsibili ies ha mus be done.
Sample o he Resea ch
The expe imen s we e ca ied ou o 4 days, he
i s session o expe imen was conduc ed on July
16 and 17, 2014. The second session was ca ied ou
on Augus 28 and 29 2014. The s uden s who we e
in e es ed o egis e as an expe imen pa icipan s
egis e ed hei names ia ex message di ec ly o a
numbe o esea che s. The o al s uden s who
signed up o he July 13, 2014 ( egis a ion dead-
line) a e 143 pa icipan s. All he pa icipan s we e
con ac ed by ex message o a end he i s session
o he expe imen a he same ime. I was done o
educe he h ea o po en ial ma u i y in expe i-
men al esea ch me hod. The expe imen was con-
duc ed in he i s session in he mo ning o minim-
ize he h ea o ma u i y, in which hey we e gi en
a chance wi h wo op ions, namely he ime on July
18, 2014 and July 19, 2014.
The o al numbe o pa icipan s ollowing he
i s session is 121 pa icipan s om a o al o 143
pa icipan s in o al egis an s (see Table 4). The
i s session was held o 45 minu es di ided in o
such as 10 minu es o ini ial explana ion, 30 mi-
nu es doing Ins umen s o DIT, and 5 minu es o
closing. The pa icipan s who ollowed he i s
session could ollow he second session when
wo king on i s i s session wi h he DIT ha is con-
sis en ly eliable. The pa icipan s we e ca ego ized
wo king consis en ly ( eliable) in acco dance wi h
he ca ego ies de eloped by Res (1986).
In he abo e case, Res (1986) de eloped a DIT
ins umen along wi h he eliabili y es pa ici-
pan s ha include: (1) he pa icipan who did no
choose a measu emen scale ha was no mo e han
8 s a emen s, (2) he pa icipan s who did no
choose he dis ac i e s a emen s o mo e han 4
poin s, and (3) The pa icipan s who we e consis-
en ly doing he a ing s a emen s in acco dance
wi h he scale selec ed in he wel h s a emen
we e gi en in each case.
The pa icipan s who me he hi d equi e-
men could ollow he expe imen . The second ses-
sion was conduc ed o pa icipan s who we e
quali ied in all h ee da a and could be used in his
s udy. On he con a y, he pa icipan s who we e
no quali ied a all h ee da a could no be used in
his s udy. The o al numbe o pa icipan s who
Table 4
The To al Numbe o Pa icipan s in Session 1
Loca ion
To al
FEB UNSOED
63 Pa icipan s
FEB UNSOED
58 Pa icipan s
To al
121 Pa icipan s
Table 5
The Pa icipan s Who Passed he Fi s Session
Regis a s
P esen a Session 1
Passed in Session 1
Con i ming he P esence
P esen in Session 2
143 Pa icipan s
121 Pa icipan s
78 Pa icipan s
70 Pa icipan s
64 Pa icipan s
Table 6
Alloca ion o Pa icipan Session 2
Ca ego y Le el o Mo al
Reasoning
Augus 28, 2014 (Posi i e Manipula ion)
Cell 1
Augus 29, 2014 (Manipula ion Nega i e)
Cell 2
Le el o Low Mo al Reasoning
17 pa icipan s
15 pa icipan s
Le el o High Mo al Reasoning
13 pa icipan s
19 pa icipan s
To al
30 Pa icipan s
34 Pa icipan s
Asca yan Ra inda: Does an e hic ma e …
140
ollowed he i s session was 121 pa icipan s,
while hose who passed in he i s session we e 78
pa icipan s. The pa icipan s who passed he i s
session we e no i ied ia sho message o he
second session expe imen . They we e asked o
con i m he abili y o hei p esence in he second
session by esponding o he announcemen in a
b ie message ha was sen . The o al pa icipan s
who con i med hei p esence o he second ses-
sion we e 70 pa icipan s, bu hose who we e
p esen a he second session o 83 pa icipan s.
The p ocess can be seen in Table 5.
All he pa icipan s who con i med he p es-
ence we e alloca ed in o wo classes, each o which
was di e en om he second. The ea men ses-
sion was ca ied ou on Augus 28 and 29, 2014.
The alloca ion was implemen ed in he hope o a
leas one cell is composed o pa icipan s who ha e
a high le el o mo al easoning and low mo ale
one. The alloca ion o pa icipan s in he wo cells is
desc ibed in de ail in Table 6.
The expe imen design was done on his e al-
ua ion is as ollows: 2 × 1 be ween subjec wi h he
de ails as in Table 7.
Hypo hesis Tes ing
The es o e o p edic ion o he indi idual ac-
o s was done by compa ing he heo e ical logic o
ac ual mo al easoning. The da a we e di ided in o
wo ca ego ies: high le el o mo al easoning and
low le el one. The heo e ical logic p edic s ha an
indi idual wi h highe le els o mo al easoning
has no in en ion o commi epo ing aud o i is
lowe han indi iduals wi h lowe le els o mo al
easoning.
The es he p edic i e abili y o indi idual ac-
o s using he alue o in en o commi i (symbo-
lized by NKP) wi h wo phases: 1) compa e he
a e age NKP o he indi iduals wi h a high le el o
mo al easoning wi h a e age NKP indi iduals o
he low le els o mo al easoning, and 2) es he
signi icance o di e ences o he NKP in indi idu-
als wi h a low mo al le el and he indi idual wi h
high mo al le el. The summa y o such da a can be
shown in Table 8.
Table 8 shows ha pa icipan s who ha e
demons a ed high le els o mo al easoning also
ha e in en ion o epo ing aud o 3.69, while pa -
icipan s wi h lowe le els o mo al easoning o
4.00. Thus, he pa icipan s wi h lowe le els o
mo al easoning ha e highe in en ion o epo ing
aud compa ed o hose wi h highe le els o mo -
al easoning. Such condi ion has ul illed he e-
qui emen o suppo ing ha indi idual ac o s
can p edic he in en ion o epo ing aud. The
second condi ion is said o p edic he in en ion o
indi idual ac o s o aud epo ing. Thus, he
in en ion o commi ing epo ing aud by he low
mo al easoning shows signi ican ly highe han
hose wi h high mo al ones. A e ha ing he di -
e ence es , he equal a iance o - es indica es
ha bo h sco es a e no signi ican ly di e en . I is
an impac o he indi idual ac o s ha canno p e-
dic he in en ions o indi iduals epo ing aud.
In e i ying he abili y o si ua ional ac o s in
p edic ing in en ion o commi epo ing aud, i
Table 7
Design o Resea ch Expe imen
Posi i e Manipula ion Cell 1
Nega i e Manipula ion Cell 2
To al
30 Pa icipan s
34 Pa icipan s
Table 8
Summa y o Hypo hesis Analysis
A e age NKP
T- es o Di e ence T Sample o
Independen
HM
LM
Ac ual Da a
(F. Indi idual)
3.69
4.00
-compu ed: 0.45
- able: 1.99
Theo e ical Logic
A e age o NKP HM < LM
-compu ed > - able
(signi ican )
Ful illed
No Ful illed
Cell 1
(posi i e manipula ion)
Cell 2
(nega i e manipula ion)
Ac ual Da a
(F. Si ua ional)
6.533
1.4706
-compu ed: 24.57
- able: 1.99
Theo e ical Logic
A e age NKP Cell 1> Cell 2
-compu ed > - able
(signi ican )
Ful illed
Ful illed
Jou nal o Economics, Business, and Accoun ancy Ven u a Vol. 18, No. 1, Ap il 2015, pages 133 – 144
141
was done in wo s ages. Fi s , i was done by com-
pa ing he a e age sco e epo ing audulen in-
en be ween Cell 1 and Cell 2. Second, i was done
by es ing he di e ence o - es on he wo inde-
penden g oups.
Table 8 shows ha he si ua ional ac o s mee
bo h hese equi emen s. Fi s , he cell has no in en-
ion o commi ing epo ing aud wi h highe
sco e han he second cell. The sco e is calcula ed
using he a e age o he wo g oups epo ing he
aud pa icipa ed in he expe imen . Second, i is
he di e ence in sco es be ween he epo ing
auds o he cells wi h wo cells di e s signi ican -
ly. I is p o ed by using di e en es s a is ics o
independen sample - es wi h equal a iance. The
analysis shows he esul o he - es is highe han
he - able. The e o e, i shows ha he di e ence
be ween he wo g oups o pa icipan s is p o ed
signi ican ly.
5. CONCLUSION, IMPLICATION, SUGGES-
TION, AND LIMITATION
As his s udy aiming o e i y he p oposi ion in
a ious esea ch e hics and p e ious beha io , he
gene aliza ion can be asse ed ha indi iduals wi h
high mo al easoning end o beha e e hically o
he o he way a ound. In addi ion, his s udy also
conside s he si ua ional ac o s oge he wi h indi-
idual ac o s in he e o o he e i ica ion.
I has p o ed ha when people a e in a si ua-
ion ha is conduci e o commi une hical ac s,
such as because o he suppo o colleagues, ami-
ly, and hey ha e he endency o ac une hically.
Fu he mo e, wi h any mo al easoning abili y,
indi iduals ac une hically. I is also con a y when
he indi iduals a e in he same si ua ion, which
hey all do no suppo une hical ac ions. Wha e e
he mo al condi ion o a pe son, hey will no
commi une hical ac s.
I can also be concluded he p e ious inding
by Ra inda (2013) in he o m o an indica ion o
si ua ional ac o s ha domina e indi idual e hical
decisions a he han indi idual ac o s. Si ua ional
ac o s show hese ac o s domina e he indi idual
e hical decisions a he han he mo al easoning
abili y.
The indings in his s udy can con ibu e o he
o ganiza ions ha wan o educe une hical beha-
io o employees. I is done by ocusing on si ua-
ional ac o s. The si ua ional ac o s in he o m o
ex e nal ac o s can a ec indi iduals o beha e
ei he e hically o une hically. The e o e, he o gan-
iza ion should con ol he employees by ocusing
on en i onmen al ac o s such as inc easing an e h-
ical clima e, ai ness, and hones y. All hese can
help educe une hical beha io in he o ganiza ion.
REFERENCES
Ajzen, I & Fishbein, M 1980, Unde s anding a i-
udes and p edic ing social beha io , Englewood
Cli s, NJ: P en ice-Hall.
Abdolmohammadi, M & Sul an, J 2002, ‘E hical
Reasoning and he Use o Inside in S ock
T ading In o ma ion’, Jou nal o Business E h-
ics, 37 (2), pp. 165–173.
Ca pen e , TD & Reime s, JL 2005, ‘Une hical and
audulen inancial epo ing: applying he
heo y o planned beha io ’, Jou nal o Busi-
ness E hics, Vol. 60 No. 2, pp. 115-129.
Da is, S, DeZoo , FT & Kopp, LS, 2006, ‘The E -
ec o Obedience P essu e and Pe cei ed Re-
sponsibili y on Managemen Accoun an s’
C ea ion o Budge a y Slack’, Beha io al Re-
sea ch in Accoun ing, 18(1), pp. 19–35,
<h p://aaajou nals.o g/doi/abs/10.2308/b
ia.2006.18.1.19>.
Day, NE, Do anne H, Pamela RD, Robe W 2011,
‘S uden o si ua ion? Pe sonali y and class-
oom con ex as p edic o s o a i udes abou
business school chea ing', Social Psychol Educ,
14, pp. 261–282.
Gille , PR & Uddin, N 2005, ‘CFO In en ions o
F audulen Financial Repo ing’, AUDITING:
A Jou nal o P ac ice & Theo y, 24(1), pp. 55–75,
<h p://aaajou nals.o g/doi/abs/10.2308/au
d.2005.24.1.55>.
Kaplan, SE 2001, ‘Fu he e idence on he e hics o
managing ea nings: an examina ion o he
e hically ela ed judgmen s o sha eholde s
and non-sha eholde s’, Jou nal o Accoun ing
and Public Policy, 20, pp. 27–44.
Ki , M & Chang, K 1998, ‘Theo y o Planned Beha-
io Beha io  : P edic ing Une hical A Com-
pa ison o he Theo y Ac ion o Reasoned and
he Theo y o Planned Beha io ’, Jou nal o
Business E hics, 17(16), pp. 1825–1834.
Kohlbe g, L 1975, ‘The Cogni i e-De elopmen al
App oach o Mo al Educa ion’, A Special Issue
on Mo al Educa ion, 56 (10), pp. 670–677.
Liyana achchi, G & Newdick, C 2009, ‘The Impac
o Mo al Reasoning and Re alia ion on Whis-
le-Blowing: New Zealand E idence’, Jou nal
o Business E hics, 89 (1), pp. 37–57,
h p://link.sp inge .com/10.1007/s10551-
008-9983-x, Viewed Oc obe 15, 2014.
Mayhew, BW & Mu phy, PR 2008, ‘The Impac o
E hics Educa ion on Repo ing Beha io ’,
Jou nal o Business E hics, 86 (3), pp. 397–416.