Cultural and institutional determinants of financial ethics : an empirical investigation

• Main Author: Natasha Amin Mohammad
• Other Authors: Giovanni Ko
• Format: Theses and Dissertations
• Language: English
• Published: 2018
• Subjects: DRNTU::Social sciences::Economic theory
• Online Access: http://hdl.handle.net/10356/76068
• Institution: Nanyang Technological University

We study the effect of cultural values on committing financial crime by analysing the ethnicities of litigants from data provided by the Securities Exchange Commission, which includes only the civil cases brought to Federal Court. We find a link between cultural characteristics and the likelihood of committing financial crime. Finance professionals originating from countries with cultural values that rank lower on uncertainty avoidance and higher on long term orientation and indulgence commit significantly more financial crime. Additionally, institutional factors, economic factors and the level of financial development of finance professionals in the country of cultural origin also affect the likelihood of committing financial crime.