Self-Selection Bias in Business Ethics Research

2006 ◽  
Vol 16 (4) ◽  
pp. 559-577 ◽  
Author(s):  
Harvey S. James

Abstract:Suppose we want to know whether the ethics of persons with one characteristic differ from the ethics of persons having another characteristic. Self-selection bias occurs if people have control over that characteristic. When there is self-selection bias, we cannot be sure observed differences in ethics are correlated with the characteristic or are the result of individual self-selection. Self-selection bias is germane to many important business ethics questions. In this paper I explain what self-selection bias is, how it relates to business ethics research, and how to correct for it. I also illustrate the correction process in an empirical analysis of the effect of organizational rank on worker ethics. Using data from the European Values Survey, I find that being a supervisor is positively correlated with worker ethics. However, I also find a negative self-selection effect. Workers with relatively lower ethics are selected into supervisory roles.

2013 ◽  
Vol 2013 (2) ◽  
pp. 77-98 ◽  
Author(s):  
Yuriy Savelyev

Based on a model of modernization by R.Inglehart and C.Welzel, the Capability Approach by A.Sen and the concept of human development of UNDP, it is argued in the article that the activity of social agents and the effectiveness of their inclusion in the social processes and institutions determine success of modernization. Using data from the third (1999–2001) and fourth (2008–2010)waves of the European Values Survey (EVS), comparative analysis of political,civic and social types of participation in 32 countries is performed and peculiarities of Ukraine in the European context is indicated that will enable to assess the prospects for modernization of Ukrainian society in future research.


Methodology ◽  
2011 ◽  
Vol 7 (2) ◽  
pp. 68-80 ◽  
Author(s):  
Miloš Kankaraš ◽  
Guy Moors

It is generally accepted that both measurement inequivalence and extreme response bias (ERB) can seriously distort measurement of attitudes and subsequent causal models. However, these two issues have rarely been investigated together. In this article we demonstrate the flexibility of a multigroup latent-class factor approach in both analyzing measurement equivalence and detecting ERB. Using data from the European Values Survey from 1999/2000, we identified an ERB in answering Likert-type questions on attitudes toward morals of compatriots. Furthermore, we found measurement inequivalence in the form of direct effects of countries on the attitude items. The model that included both these issues resulted in quite distinct findings regarding country difference in the latent attitude compared to the models that only included one of these effects – either measurement inequivalence or extreme response. It is suggested that the all-inclusive model provides the more valid estimates of country differences in the latent attitude.


2017 ◽  
Vol 45 (6) ◽  
pp. 1029-1042 ◽  
Author(s):  
Na Zhang ◽  
Jian Zhang ◽  
Jing Wang

To expand the business ethics research field, and to increase society's understanding of Chinese insurance agents' business ethics, we investigated how gender differences are related to agents' business ethical sensitivity and whether or not these relationships are moderated by empathy. Through a regression analysis of the factors associated with the business ethical sensitivity of 417 Chinese insurance agents, we found that gender played an important role in affecting business ethical sensitivity, and empathy significantly affected business ethical sensitivity. Furthermore, empathy had a moderating effect on the relationship between gender and business ethical sensitivity. Both men and women with strong empathy scored high on business ethical sensitivity; however, men with strong empathy had higher levels of business ethical sensitivity than did women with little empathy. The findings add to the literature by providing insight into the mechanisms responsible for the benefits of empathy in increasing business ethical sensitivity.


Author(s):  
Hailu Abebe Wondirad

Abstract This paper empirically examines whether competition (measured by using the new measure of competition, the Boone Indicator) moderates the relationship between Microfinance Institutions’ (MFIs) social and financial performances using data from 183 Indian MFIs over the period 2005–2014. The findings indicate that MFIs’ social and financial performances have a positive significant relationship. Moreover, the form of the relationship is both lead-lag and cotemporal. The Indian microfinance market was very competitive over the period 2005–2014. The empirical findings show that competition positively moderates the relationship between MFIs’ social and financial performances. More precisely, the empirical analysis provides evidence that the association between MFIs’ depth of outreach and operational self-sufficiency is conditional upon competition. These results suggest that in a competitive market, the more MFI deepen their depth of outreach, the higher contribution it has to their operational self-sufficiency.


2016 ◽  
Vol 29 (3) ◽  
pp. 313-331 ◽  
Author(s):  
Grant Richardson ◽  
Grantley Taylor ◽  
Roman Lanis

Purpose This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia. Design/methodology/approach The authors use multivariate regression analysis to test the association between the presence of female directors on the board and tax aggressiveness. They also test for self-selection bias in the regression model by using the two-stage Heckman procedure. Findings This paper finds that relative to there being one female board member, high (i.e. greater than one member) female presence on the board of directors reduces the likelihood of tax aggressiveness. The results are robust after controlling for self-selection bias and using several alternative measures of tax aggressiveness. Research limitations/implications This study extends the extant literature on corporate governance and tax aggressiveness. This study is subject to several caveats. First, the sample is restricted to publicly listed Australian firms. Second, this study only examines the issue of women on the board of directors and tax aggressiveness in the context of Australia. Practical implications This research is timely, as there has been increased pressure by government bodies in Australia and globally to develop policies to increase female representation on the board of directors. Originality/value This study is the first to provide empirical evidence concerning the association between the presence of women on the board of directors and tax aggressiveness.


2018 ◽  
Vol 53 (3) ◽  
pp. 831-868 ◽  
Author(s):  
Ruxanda Berlinschi ◽  
Ani Harutyunyan

This research investigates migrant self-selection on values, beliefs, and attitudes using data from Eastern European and former Soviet countries. We find that individuals who intend to emigrate are more politically active, more critical of governance and institutions, more tolerant toward other cultures, less tolerant of cheating, more optimistic, and less risk averse. With the exception of risk aversion, all selection patterns are heterogeneous across regions of origin. On the other hand, no self-selection pattern is detected on education, willingness to pay for public goods, and economic liberalism. These findings provide new insights into the determinants of international migration and reveal some of its less known consequences, such as a possible reduction of domestic pressure for political improvements in post-Soviet states due to politically active citizens’ higher propensity to emigrate.


2000 ◽  
Vol 10 (1) ◽  
pp. 53-61 ◽  
Author(s):  
Joanne B. Ciulla

Abstract:This paper will discuss the uncertainty of job tenure, inequality of wages in American business, and the challenges for a creating a new social and moral compact between employer and employee. I begin by arguing that business ethics scholars missed some of the disturbing trends in management thinking because they often focused on current problems in business rather than questioning some of the basic assumptions about the way businesses are managed. As Rochefoucauld observed (albeit in a different context) we were overtaken by the evils of the present and I would argue, this was because we didn’t pay attention to the past. Business ethics research, like management research, is often ahistorical and hence tells only part of the story. If we don’t know how we got to a certain problem, it’s really difficult to see where the present problem and our solutions to it might lead us.


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