Local Crime Environment and Corporate Financial Misconduct Using Benford’s Law

2021 ◽  
Author(s):  
Joanna Golden
Keyword(s):  
Executive Compensation ◽  
Social Norm ◽  
Financial Statement ◽  
Environmental Criminology ◽  
Fraud Triangle ◽  
The Social ◽  
Or Practice ◽  
Financial Misconduct ◽  
High Crime ◽  
The Impact

This study analyzes the impact of the local crime environment on the likelihood of a firm engaging in financial misconduct. Using the Benford Score metric, which assesses the extent to which a firm’s financial statement number distribution diverges from a theoretical distribution, I find that firms headquartered in high crime areas are associated with greater financial misconduct. The link is more pronounced in firms that offer more stock-based executive compensation to their executives or practice weak corporate governance, and change in the crime rate is associated with change in the firm’s financial misconduct. My results support the social norm, social learning, and environmental criminology theories, as well as the fraud triangle, and are robust to a number of alternative specifications and approaches. The evidence implies that a firm’s environment influences the level of corporate financial misconduct.

scholarly journals What Motivates Restaurant Customers to Tip: Evidence from the Czech Republic

2018 ◽  
Vol 66 (1) ◽  
pp. 273-282
Author(s):  
Michal Kvasnička
Keyword(s):  
Service Quality ◽  
Group Size ◽  
Social Norm ◽  
Descriptive Statistics ◽  
The Other ◽  
Policy Capturing ◽  
Good Service ◽  
The Czech Republic ◽  
The Social ◽  
The Impact

Although the literature on tipping is enormous, it is still unclear what motivates people to tip. In particular, it is unresolved how tips depend on service quality, patronage frequency, and group sizes, why people tip more for better service if they do, and why they tip at all when they can avoid it. This study aims to fill this gap. It uses survey data to explore what motivates Czech restaurant customers to tip. Reasons for tipping, factors constituting service quality, and reasons for tipping more for better service are explored by descriptive statistics. The impact of service quality, group size, and patronage frequency on tips is assessed by random effects estimator and simple policy capturing. The results show that Czech customers tip mostly because of gratitude, to follow the social norm, and to avoid feeling guilty when not tipping. Most Czechs do not tip to supplement waiters’ wages. Their tips are strongly influenced by service quality, which includes the whole experience of a dinner in a restaurant and not only the waiter’s performance. They reward a good service because it is fair, out of gratitude, and to motivate the waiters to provide good service in the future, but not because it is prescribed by social norms. On the other hand, there is little evidence that their tips depend on patronage frequency or group size.

When Private Reporting Is More Positive Than Public Reporting

2016 ◽  
Vol 47 (3) ◽  
pp. 150-162
Author(s):  
Garrett L. Strosser ◽  
Peter K. Jonason ◽  
Robert Lawson ◽  
Ashley N. Reid ◽  
Alex W. Vittum-Jones
Keyword(s):  
Behavioral Intentions ◽  
Social Norm ◽  
Pluralistic Ignorance ◽  
Negative Attitudes ◽  
Positive Behaviors ◽  
Positive Attitudes ◽  
The Social ◽  
The Us ◽  
Public Scrutiny ◽  
The Impact

Abstract. Across three studies, we assessed the impact of perceived social norms on attitudes and positive behavioral intentions towards atheists and religious believers. Reported attitudes, reported acceptability of expressing positive and negative attitudes, and reported positive behavioral intentions disproportionately favored religious believers over atheists. However, participants reported a higher likelihood of engaging in positive behaviors towards atheists when the threat of public scrutiny was limited, indicating that the social norm in the US may be suppressing privately held, positive behavioral intentions that would otherwise support atheists, creating a state of pluralistic ignorance. Individuals also reported having more positive attitudes and a higher level of positive behavioral intentions towards religious believers relative to others. Finally, estimates of the prevalence of religious believers in the population also tied directly to one’s perception of the acceptability of expressing positive and negative attitudes towards these groups.

scholarly journals How best to nudge taxpayers? The impact of message simplification and descriptive social norms on payment rates in a central London local authority

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Peter John ◽  
Toby Blume
Keyword(s):  
Social Norm ◽  
Local Authority ◽  
Controlled Trial ◽  
Meta Analysis ◽  
Target Population ◽  
Exact Matching ◽  
Client Group ◽  
Change Behavior ◽  
The Social ◽  
The Impact

Behavioral insights or nudges have yielded great benefits for toda's public administrators by improving the quality of official messages and increasing revenue flows. In the absence of a large number of studies suitable for meta-analysis, less is known about the external validity of these interventions, their range of impact, and the exact matching of the behavioral cue to the client group and context. Factorial designs and repeated interventions, as in the study reported in this article, can add insight through respectively comparing interventions and analyzing their impacts over time. This randomized controlled trial tests whether simplification and/or a descriptive social norm can increase payment of local taxes in a central London local authority. In the first wave, a factorial design on a targeted group of residents, simplification increased the number of people paying by four percentage points, whereas the social norm did not change behavior. In wave two of the study, which was carried out across all households, the descriptive social norm backfired, reducing the rate of payment. The heterogeneous nature of the target population and the exact wording of the social norm are discussed as possible reasons for these results.

Social norms, social value, and judgments of responsibility 1Preparation of this paper was supported by a Swiss National Science Foundation Fellowship. We thank Jessica Kadis for her valuable help in putting the finishing touches to this paper.

2001 ◽  
Vol 60 (1) ◽  
pp. 35-46 ◽  
Author(s):  
Loraine Devos-Comby ◽  
Thierry Devos
Keyword(s):  
Social Norms ◽  
Social Norm ◽  
Strong Support ◽  
Social Value ◽  
Hiv Positive ◽  
Causal Inferences ◽  
Responsibility Attribution ◽  
Swiss National Science Foundation ◽  
The Social ◽  
The Impact

We investigated the impact of social norms on responsibility attribution. We hypothesized that an actor would be held more responsible for a negative outcome when adopting a counternormative, rather than normative, conduct. Under these circumstances, judging someone responsible consists of casting the negative social value of the conduct onto the actor. In three experiments, we found that an HIV-positive person was judged more responsible for the infection when his or her conduct transgressed a social norm than when it did not. As expected, this effect was mediated by the social value attributed to the actor, but not by the affective reactions toward him or her. In addition, we ruled out several alternative interpretations of these findings. In Experiment 1, judgments of responsibility were unrelated to causal inferences. In Experiment 2, the salience of the counternormative conduct did not affect the impact of the social norm on responsibility attribution. In Experiment 3, the validation (commonness) of the conduct did not moderate the effect of its normativeness. Overall, the results provide strong support for the idea that responsibility attribution is based on the social desirability of behaviors.

scholarly journals A Multifaceted View of CEO Compensation and Performance: A Case Study

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
John Nirenberg
Keyword(s):  
Executive Compensation ◽  
The United States ◽  
Societal Impact ◽  
Top Executives ◽  
New Class ◽  
The Social ◽  
Ceo Pay ◽  
And Performance ◽  
The Impact

This case addresses CEO pay, a topic that annually stimulates the question of whether or not executive compensation is based on performance or something else and why it is so high in absolute terms. The societal impact of the new class of executives among the largest companies in the United States set apart from the rest of the world in a cocoon of wealth and privilege inflames resentment among workers, widens an already unfathomable distance between those at the top and the rest of us, and endangers the social amity among citizens of the polity . Positive social change might result from the justification and recalibration of salaries to align more sensibly with actual differences in experience, knowledge, and talent among all workers. However, first, we must become aware of the impact of differences that now alienate much of the working class population from workplaces that enable such a wide salary gap between top executives and average workers. This case is designed to help learners think through the various elements constituting the excessive CEO pay issue.

KAJIAN PENDAPATAN NON HALAL DAN DAMPAK PENGGUNAANNYA TERHADAP REPUTASI DAN KEPERCAYAAN NASABAH PERBANKAN SYARIAH

2018 ◽  
Vol 9 (1) ◽  
pp. 75-101
Author(s):  
Saiful Muchlis ◽  
Husain Soleh Utomo
Keyword(s):  
Qualitative Method ◽  
The Other ◽  
Financial Statement ◽  
Case Study Approach ◽  
Study Approach ◽  
Interpretive Paradigm ◽  
The Social ◽  
Customer Trust ◽  
The Impact

This study aims to determine the form of non-halal income and the impact on reputation and customer trust that is found in sharia banking, especially in PT Bank Muamalat Indonesia Makassar branch. This study used qualitative method based on interpretive paradigm with case study approach, to explain the phenomena that occur in the social scope or the scope of the company. Interview and financial statement analysis is used to gather data. The results of this study indicate that the non-halal income in PT Bank Muamalat Indonesia, Makassar Branch is from interest revenue of deposit in the other banks, and it’s derived to the declining of customer trust, then it can affect to the Bank’s reputation.

The Impact of Endorsing the Belief in a Just World on Social Judgments

2013 ◽  
Vol 44 (3) ◽  
pp. 209-218 ◽  
Author(s):  
Benoît Testé ◽  
Samantha Perrin
Keyword(s):  
Social Desirability ◽  
Social Value ◽  
Social Utility ◽  
Western Society ◽  
Social Judgments ◽  
Just World ◽  
The Social ◽  
Main Effect ◽  
The Impact

The present research examines the social value attributed to endorsing the belief in a just world for self (BJW-S) and for others (BJW-O) in a Western society. We conducted four studies in which we asked participants to assess a target who endorsed BJW-S vs. BJW-O either strongly or weakly. Results showed that endorsement of BJW-S was socially valued and had a greater effect on social utility judgments than it did on social desirability judgments. In contrast, the main effect of endorsement of BJW-O was to reduce the target’s social desirability. The results also showed that the effect of BJW-S on social utility is mediated by the target’s perceived individualism, whereas the effect of BJW-S and BJW-O on social desirability is mediated by the target’s perceived collectivism.

Comprehensive Income: which potential effects on firms' performance evaluation and users' decision process?

2016 ◽  
pp. 55-94
Author(s):  
Pier Luigi Marchini ◽  
Carlotta D'Este
Keyword(s):  
Performance Evaluation ◽  
Decision Process ◽  
Financial Analysts ◽  
Listed Companies ◽  
Financial Statement ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Gains And Losses ◽  
The Impact

The reporting of comprehensive income is becoming increasingly important. After the introduction of Other Comprehensive Income (OCI) reporting, as required by the 2007 IAS 1-revised, the IASB is currently seeking inputs from investors on the usefulness of unrealized gains and losses and on the role of comprehensive income. This circumstance is of particular relevance in code law countries, as local pre-IFRS accounting models influence financial statement preparers and users. This study aims at investigating the role played by unrealized gains and losses reporting on users' decision process, by examining the impact of OCI on the Italian listed companies RoE ratio and by surveying a sample of financial analysts, also content analysing their formal reports. The results show that the reporting of comprehensive income does not affect the financial statement users' decision process, although it statistically affects Italian listed entities' performance.

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