Local happiness and corporate financial misconduct: Does happiness reduce organizational opportunistic behavior?

buir.contributor.authorŞensoy, Ahmet
buir.contributor.orcidŞensoy, Ahmet|0000-0001-7967-5171
dc.citation.issueNumber6
dc.citation.volumeNumber42
dc.contributor.authorCheng, Feiyang
dc.contributor.authorLiao, Jing
dc.contributor.authorLiu, Xutang
dc.contributor.authorŞensoy, Ahmet
dc.contributor.authorYao, Shouyu
dc.date.accessioned2024-03-09T10:32:54Z
dc.date.available2024-03-09T10:32:54Z
dc.date.issued2023-11-01
dc.departmentDepartment of Management
dc.description.abstractThis study explores the impact of local happiness on corporate financial misconduct. Using large-scale survey data to construct the measurement of the local happiness level, we find that firms headquartered in happier regions are less likely to engage in financial misconduct. Our mechanism analysis indicates that local happiness promotes the building of regional social capital and the cost of misconduct is higher in regions with higher happiness levels, which explains the mitigating effect of local happiness on corporate misconduct. Moreover, the effect of local happiness is more salient when firms are in regions with a lower level of marketization and less financial supervision expenditures and firms with weaker corporate governance mechanisms and risk tolerance. Our results highlight that happiness, a measure of subjective well-being, can serve as a substitute for formal institutions to alleviate organizational misconduct, especially when formal institutions are weak.
dc.description.provenanceMade available in DSpace on 2024-03-09T10:32:54Z (GMT). No. of bitstreams: 1 Local_happiness_and_corporate_financial_misconduct_Does_happiness_reduce_organizational_opportunistic_behavior.pdf: 789580 bytes, checksum: 4dcb28a2ad4cf07d072cd6221f6d52ba (MD5) Previous issue date: 2023-11-01en
dc.embargo.release2025-11-01
dc.identifier.doi10.1016/j.jaccpubpol.2023.107157
dc.identifier.eissn1873-2070
dc.identifier.issn0278-4254
dc.identifier.urihttps://hdl.handle.net/11693/114444
dc.language.isoen
dc.publisherElsevier Inc.
dc.relation.isversionofhttps://dx.doi.org/10.1016/j.jaccpubpol.2023.107157
dc.source.titleJournal of Accounting and Public Policy
dc.titleLocal happiness and corporate financial misconduct: Does happiness reduce organizational opportunistic behavior?
dc.typeArticle

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