•  40
    To what extend is the going concern judgment influenced by the self-fulfilling prophecy?
    with Andrés Guiral-Contreras and Emiliano Ruiz-Barbadillo
    We examined whether auditors' attitude to the evidence may be driven by their perception of the self-fulfilling prophecy effect. Following previous research on motivated reasoning, we assumed that the self-fulfilling prophecy effect could be interpreted as a potential motivational/incentive factor supporting auditor's reluctance to release going concern opinions. We contribute to the literature by demonstrating in a laboratory experiment that auditors' perceptions of the self-fulfilling prophecy…Read more
  •  14
    Do Business Schools' Theories Negatively Influence Students Ethical Positions?
    with Birgitta Påhlsson and Arne Söderbom
    Business Ethics. forthcoming.
  •  102
    A model capturing ethics and executive compensation
    with Susana Gago
    Journal of Business Ethics 48 (2): 189-202. 2003.
    This article develops and applies a knowledge-based framework for understanding and interpreting executive compensation under the rubric of ethical consideration. This framework classifies six major ethical considerations that reflect issues in compensation design. We emphasize that these six ethical considerations are influenced by liberty and equality concepts. This framework helps to highlight areas where executive compensation has not been well spelled out.
  •  26
    Do Investors Value a Firm’s Commitment to Social Activities?
    with Hiu Lam Choy and Andrés Guiral
    Journal of Business Ethics 114 (4): 607-623. 2013.
    Previous empirical research has found mixed results for the impact of corporate social responsibility (CSR) investments on corporate financial performance (CFP). This paper contributes to the literature by exploring in a two stage investor decision-making model the relationship between a firm’s innovation effort, CSR, and financial performance. We simultaneously examine the impact of CSR on both accounting-based (financial health) and market-based (Tobin’s Q) financial performance measures. From…Read more
  •  55
    Cultural and ethical effects on managerial decisions: Examined in a throughput model (review)
    with Susana Gago
    Journal of Business Ethics 31 (4). 2001.
    Financial and cost accounting information is processed by decision-makers guided by their particular need to support decisions. Recent technological advances impacting on information as well as organizations such as the European Community mandating financial reporting requirements for many countries is rapidly changing the landscape for decision making using accounting information. Hence, the importance of individuals'' decision making is more important than it was previously. These decisions ar…Read more
  •  45
    Different Pathways that Suggest Whether Auditors’ Going Concern Opinions are Ethically Based
    with Andrés Guiral and José A. Gonzalo
    Journal of Business Ethics 86 (3): 347-361. 2009.
    Several critics have reopened the continuing debate regarding the credibility of the auditing profession in part because of auditors' reluctance to issue warning signals to investors. At the root of auditors' lack of independence issues are conflicts of interest resulting from the structural features of auditor-client relationship. The Throughput Model is advanced to illustrate how ethical issues may be influenced by conflicts of interest. In the first stage, the TP provides an isolation of audi…Read more
  •  38
    Ethical Dilemmas in Auditing: Dishonesty or Unintentional Bias?
    with Andrés Guiral, Emiliano Ruiz, and José A. Gonzalo
    Journal of Business Ethics 91 (S1). 2009.
    Moral Seduction Theory suggests that auditors are morally compromised by the perceived consequences of their opinions. The root of the auditing problem appears to result in an unintentional bias rather than in dishonesty. Although important accounting reforms have been taken to deal with auditors' trustworthiness, their lack of independence has not been adequately addressed. The new regulation (Sarbanes-Oxley Act) is a consequence of an incorrect understanding of the main true source of auditor'…Read more
  •  15
    Corporate Social Responsibility Enhanced Control Systems Reducing the Likelihood of Fraud
    with Arne Söderbom and Andrés Guiral
    Journal of Business Ethics 131 (4): 871-882. 2015.
    All kinds of fraud are costly for the people engrossed both financially and often in terms of the time needed to clear their name when illegal use has been made of their personal details. The relationship among ethics, internal control, and fraud is important in the understanding of corporate social responsibility. This article uses an Ethical Process Throughput Model embedded in the Fraud triangle in order to better understand the interconnectedness of ethical positions and internal control sys…Read more
  •  62
    Three Primary Trust Pathways Underlying Ethical Considerations
    Journal of Business Ethics 91 (1): 83-93. 2010.
    The role of trust pathways in achieving a competitive advantage is becoming increasingly important for effective ethical consideration policies in all business and non-business sectors. This paper argues that there are three primary trust pathways of rational choice, rule-based trust, and category-based trust that underscore the basis of trust relationships. The implementation of these primary trust pathways is strongly influenced by expertise level, incomplete information, rapidly shifting envi…Read more