47 Pages Posted: 10 Mar 2016 Last revised: 19 Aug 2016
Date Written: August 18, 2016
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 not as distinct as some believe.
Keywords: CEOs, ethics, corporate misconduct, fraud
JEL Classification: G30, M14
Suggested Citation: Suggested Citation
Griffin, John M. and Kruger, Samuel A. and Maturana, Gonzalo, Do Personal Ethics Influence Corporate Ethics? (August 18, 2016). Available at SSRN: https://ssrn.com/abstract=2745062