Predictors of ethical decisions regarding insider trading


This paper examines potential predictors of ethical decisions regarding insider trading. An interactionist perspective is taken, in which person variables, situational variables, and the interaction of these two sets of variables are viewed as influencing ethical decisions. The results of our study support such a perspective. Ethical decisions regarding insider trading appear to be a function of a complex set of interacting variables related to both the person and the situation. The implications of these findings are discussed.

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Additional information

David E. Terpstra is Hearin-Hess Professor of Management at the University of Mississippi. A frequent contributor to management and psychological journals, his current research interests involve business ethics, sexual harassment, and human resource management issues.

Mario G. C. Reyes is an Assistant Professor of Finance at the University of Idaho. His research and publications have been primarily in the areas of market efficiency, portfolio management, and financial econometrics. He has participated in the Authur Anderson & Co. Conference on Teaching Business Ethics.

Donald W. Bokor's research interests are in the domain of organizational structure and development with implications on human behavior and strategic management.

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Terpstra, D.E., Reyes, M.G.C. & Bokor, D.W. Predictors of ethical decisions regarding insider trading. J Bus Ethics 10, 699–710 (1991).

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  • Economic Growth
  • Potential Predictor
  • Ethical Decision
  • Person Variable
  • Study Support