Dishonesty and Risk-Taking: Compliance Decisions of Individuals and Groups

53 Pages Posted: 15 Aug 2019

See all articles by Martin Fochmann

Martin Fochmann

Free University of Berlin; University of Cologne

Martin Kocher

University of Vienna

Nadja Müller

University of Cologne

Nadja Wolf

Leibniz Universität Hannover

Date Written: August 12, 2019

Abstract

Unethical behavior in organizations is usually associated with the risk of negative consequences for the organization and for the involved managers if being detected. The existing experimental literature in economics has so far mainly focused on the analysis of unethical behavior in environments that involve no fines or similar monetary consequences. In the current paper, we use a tax compliance framework to study (un-)ethical behavior of individuals and small groups. Our results show that groups are clearly less compliant than individuals. The risk of being detected is the most important aspect in the group communication process when deciding on compliance.

Keywords: dishonesty, lying, compliance, risk-taking, group decisions, communication, norms, experiment

JEL Classification: C91, C92, D03, H26

Suggested Citation

Fochmann, Martin and Kocher, Martin and Müller, Nadja and Wolf, Nadja, Dishonesty and Risk-Taking: Compliance Decisions of Individuals and Groups (August 12, 2019). Available at SSRN: https://ssrn.com/abstract=3436157 or http://dx.doi.org/10.2139/ssrn.3436157

Martin Fochmann (Contact Author)

Free University of Berlin ( email )

Thielallee 73
Accounting and Taxation
Berlin, 14195
Germany

University of Cologne ( email )

Albertus-Magnus-Platz
Behavioral Accounting/Taxation/Finance
Cologne, 50923
Germany

HOME PAGE: http://www.taxation.uni-koeln.de/de/team/prof-dr-martin-fochmann/

Martin Kocher

University of Vienna ( email )

Bruenner Strasse 72
Vienna, Vienna 1090
Austria

Nadja Müller

University of Cologne ( email )

Albertus-Magnus-Platz
Cologne, 50923
Germany

Nadja Wolf

Leibniz Universität Hannover ( email )

Königsworther Platz 1
D-30167 Hannover, 30167
Germany

HOME PAGE: http://www.steuern.uni-hannover.de/wolf.html?&L=1

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