Do Personal Ethics Influence Corporate Ethics?
نویسندگان
چکیده
In this paper, we introduce a new measure of personal ethics in the form of marital cheating to examine the relationship between personal ethics and corporate misconduct. Firms with CEOs and CFOs who use a marital infidelity website are more than twice as likely to engage in two forms of corporate misconduct. The relationship is not explained by a wide range of regional, firm, and executive characteristics or by the infidelity website usage of other executives. Additionally, white-collar SEC defendants also have elevated levels of infidelity website usage. Our findings suggest that personal and professional ethics are closely related. (JEL G30, M14)
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