Can a Code of Ethics Improve Manager Behavior and Investor Confidence ? An Experimental Study

@inproceedings{Davidson2016CanAC,
  title={Can a Code of Ethics Improve Manager Behavior and Investor Confidence ? An Experimental Study},
  author={Bruce I. Davidson and Douglas E. Stevens},
  year={2016}
}
Policy makers and corporations have recently emphasized a code of ethics as an effective aspect of corporate governance. The corporate governance literature in accounting, however, provides little empirical or theoretical support for this emphasis. We address this gap between public policy and the literature by studying the effectiveness of a code of ethics in an experimental setting. Using Bicchieri’s (2006) model of social norm activation, we predict that a code of ethics will improve manager… CONTINUE READING