Journal of Business Ethics 93 (2):335-353 (2010)

This article proposes and empirically tests a theoretical framework incorporating Reidenbach and Robin’s (J Bus Ethics 10(4):273–284, 1991 ) conceptual model of corporate moral development. The framework is used to examine the relation between governance and business ethics, as proxied by diversity management (DM), and financial reporting quality, as proxied by the magnitude of earnings management (EM). The level of DM and governance quality are measured in accordance with the ratings of Jantzi Research (JR), a leading provider of social and governance research for institutional investors. This DM score is part of an index developed by JR that investment managers use to integrate DM criteria into their investment decisions. As expected, a negative relation between corporate DM development and financial reporting quality is found while controlling for other factors known in the literatures on governance and accounting choices to affect earnings quality. Despite some caveats presented in conclusion, this study contributes to the ethics, governance, and financial reporting literatures by studying the dynamics between governance and ethics in the prevention of EM.
Keywords Philosophy   Quality of Life Research   Management/Business for Professionals   Economic Growth   Ethics
Categories (categorize this paper)
DOI 10.1007/s10551-009-0225-7
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy

Upload a copy of this paper     Check publisher's policy     Papers currently archived: 68,916
External links

Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library

References found in this work BETA

A Conceptual Model of Corporate Moral Development.R. Eric Reidenbach & Donald P. Robin - 1991 - Journal of Business Ethics 10 (4):273 - 284.

View all 11 references / Add more references

Citations of this work BETA

View all 12 citations / Add more citations

Similar books and articles


Added to PP index

Total views
100 ( #115,338 of 2,497,992 )

Recent downloads (6 months)
1 ( #428,301 of 2,497,992 )

How can I increase my downloads?


My notes