In previous studies (see e.g., Liden, Sparrowe, & Wayne, 1997; Schyns & Croon, 2006; Volmer, Niessen, Spurk, Linz, & Abele, 2011), leader-member exchange (LMX) has been shown to be related to positive outcomes. However, little attention has been paid to the relationship
between LMX and negative organizational behaviors such as unethical behavior. In this study we investigated 249 Chinese managers in 4 different finance companies in China, and found that there is a mediating effect of job satisfaction on the negative relationship between LMX and unethical
behavior.