Measuring Ethical Behavior of Accounting Graduates in Malaysia:
Comparison between Perceptual Statements and Vignettes
HASNAH HARON1, NURUL NAZLIA JAMIL1, NATHASA MAZNA RAMLI1,
FATIN ARISSA PARSIMIN1, AZIM AZUAN OSMAN2
1Faculty of Economics and Muamalat,
Universiti Sains Islam Malaysia,
Bandar Baru Nilai, 71800, Nilai, Negeri Sembilan,
MALAYSIA
2Faculty of Industrial Management,
Universiti Malaysia Pahang Al-Sultan Abdullah,
Lbh Persiaran Tun Khalil Yaakob, Kampung Melayu Gambang, 26300 Kuantan, Pahang,
MALAYSIA
Abstract: - The failure of accountants/auditors to uphold positive values and maintain ethical behavior while
performing professional services has been widely discussed. Most future accountants in Malaysia are
accounting graduates from Malaysian Institute of Accountants (MIA) accredited universities. Previous studies
have found that ethical culture at the workplace will influence the ethical behavior of an individual. Previous
studies have measured ethical behavior using vignettes scenarios and perceptual statements. Thus, the study has
two objectives, and they are firstly to empirically assess the impact of an ethical workplace culture on the
ethical behavior of these graduates and secondly to compare the statistical results of two different
measurements of ethical behavior using perceptual statements and vignettes. To achieve both objectives,
SmartPLS 4 was utilized to examine the impact of ethical culture at workplace on the ethical behavior of
accounting graduates using vignette scenarios and perceptual statements. This study involved 344 samples of
accounting graduates from MIA-accredited universities, and path analysis was performed to test the
hypotheses. The findings demonstrate a positive relationship between the ethical workplace culture and ethical
behavior among accounting graduates, regardless of whether the ethical behavior was measured using vignette
scenarios or perceptual statements. However, it was found that the relationship of ethical culture at the
workplace and ethical behavior measured by perceptual statements provides a better explanation of the
relationship between ethical behavior and workplace culture, as evidenced by its higher path coefficient, larger
effect size, and more explanatory power. as opposed to the relationship of ethical culture at workplace and
ethical behavior measured by perceptual statements. Taking these results into account, researchers are advised
to choose the measurement of ethical behavior carefully and to ensure that the research instruments used are
appropriate for the complexity of the phenomenon being studied, which improves the precision and
dependability of research results.
Key-Words: - Ethical culture at the workplace, Ethical behavior, Perceptual statements, Vignette scenarios,
Accounting graduates, SmartPLS 4, Malaysian Institute of Accountants
Received: April 13, 2023. Revised: February 11, 2024. Accepted: March 2, 2024. Published: March 29, 2024.
1 Introduction
The role of accountants is crucial, serving as the
heart of organizations. Any misleading information
provided by accountants can have far-reaching
consequences, affecting the entire organization and,
indirectly, impacting the economy of a country.
Instances of fraudulent behavior or unethical
scandals can lead to severe repercussions for the
organization as a whole, as seen in the Enron and
Malaysia Airlines Berhad (MAS) cases in 2001,
which ultimately resulted in the bankruptcy of these
businesses, [1], [2]. Accounting is a valuable
knowledge base influencing the market economy.
Accountants are responsible for monitoring every
business transaction, profit generated, and the
financial situation of an organization. Therefore, the
financial information reported to decision-makers
must be precise and transparent to avoid any
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Hasnah Haron, Nurul Nazlia Jamil,
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Azim Azuan Osman
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inconvenient consequences. Every accountant in an
organization must possess technical skills and
uphold high moral values to be competent and
ethical, ensuring the integrity of the organization.
The Corruption Perception Index (CPI) 2022
reveals that almost 70% of countries worldwide
scored below 50, indicating a high level of
corruption, [3]. Conversely, the Global Integrity
Report 2022 by Ernst & Young (EY) indicates that
42% of respondents agree that unethical behavior in
organizations is frequently tolerated, particularly for
senior or high-performing individuals. Data from
4,762 surveys conducted across 54 countries
indicate a concerning trend, with 55% of
respondents feeling that the integrity standard has
either improved or worsened over time, [4]. Even
though statistics have shown a negative trend,
efforts in maintaining integrity by accountants
remain quite the same over the years.
Previous studies on ethics have examined
ethical behavior, especially in the area of
psychology and organizational behavior. Corporate
scandals have raised concerns for the accounting
profession in particular, highlighting the potential
harm that unethical behavior may impose on an
organization's performance and reputation,
ultimately impacting a nation's economy.
According to [5], individual behavior is influenced
by the cultural and professional environment, and
thus this study would like to empirically test the
applicability of this theory by assessing the
influence of ethical culture at the workplace on the
ethical behavior of accounting graduates.
According to a quick Google Scholar search, it
can be seen that there is a lack of ethical behavior
research on accountants (195,000 results) as
compared to doctors (1,010,000), engineers
(625,000 results), and lawyers (613,000 results).
Thus, it is important to address this gap to
understand further the ethical behavior of
accountants. In addition, there is a variability of
scales used to measure ethical behavior in previous
studies. Some used perceptual statements, whilst
others used vignette scenarios to measure ethical
behavior. There are pros and cons in using the
different measurements. Whilst [6] and [7]
recommend the use of vignette scenarios to mitigate
potential social desirability bias, others question its
efficiency, [8], [9]. This study seeks to address this
ambiguity by comparing the results of construct
validity and the significance of relationships
between an ethical culture at workplace and ethical
behavior when utilizing both vignette scenarios and
perceptual statement scales. By examining these
measurement approaches, the study aims to
contribute to the methodological rigor of ethical
research within the accounting profession and
enhance the understanding of the nuanced factors
influencing ethical behavior among accounting
graduates in Malaysia. Thus, the study outlined two
objectives as the following:
i) To empirically assess the impact of an
ethical workplace culture on the ethical
behavior of accounting graduates
ii) To compare the statistical results of two
different measurements of ethical behavior
using perceptual statements and vignettes.
2 Literature Review
2.1 Ethics in Accounting Profession
Ethics in accounting, as a branch of applied ethics,
emphasizes human and business ethics, involving
judgments and moral values within the accounting
profession. Generally, actions aligned with
accounting standards are deemed ethical behavior.
Ethical guidelines vary among individuals in
society, particularly within organizations, as
highlighted by [10]. A significant number of
businesses globally grapple with ethical issues in
their accounting procedures, introducing the
potential for conflicts of interest. Financial
misstatements that breach ethical standards in
corporate finance not only damage an organization's
reputation but also impact customer satisfaction and
investor confidence.
According to [11], ethics, as a philosophical
branch, revolves around values inherent in human
behavior, assessing the truth or falseness of actions
and the good or evil outcomes stemming from them.
[12], further underscores ethics as the subject
examining issues related to vice and virtue, wrong
and right, and good and evil. Thus, accounting
standards should emphasize ethics to ensure the
integrity of business transactions and to produce
more ethical accountants.
Investors, managers, and senior officials
assigned are dependent on accountants to produce
timely and accurate financial reports. Complying
with ethics will ensure compliance with internal
control systems and will be able to detect unethical
behaviors like manipulation and falsification of
documents as noted by [11]. Furthermore, unethical
behavior poses the risk of criminal activity,
potentially lowering profit margins, [13]. It is
imperative for accountants to strictly adhere to
ethical standards within the accounting profession to
uphold the integrity of financial reporting and
organizational well-being.
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2.2 Ethical Behavior of Accounting
Graduates
Ethical behavior refers to conduct that aligns with
established moral and principled standards,
reflecting a sense of integrity, fairness, and
responsibility in interpersonal, professional, or
societal interactions, [14]. Ethical behavior refers to
morally right actions, commitment to honesty, and
respect for one another. Decisions are made in
accordance with a set of values that are guided by
ethical principles and standards, [15]. In summary,
ethical behavior is a commitment to make morally
sound choices based on guided values.
The ethical behavior of accountants is gauged
by the ethical standards of the accounting
profession. Numerous ethical standards are widely
adopted by accountants worldwide. For instance, the
International Federation of Accountants (IFAC)
International Code of Ethics for Professional
Accountants serves as a guideline and standard for
professional ethics among accountants in the United
States, [16]. In Malaysia, the Malaysian Institute of
Accountants (MIA)-By Law (Professional Ethics,
Conduct and Practice), derived from the IFAC
International Code of Ethics for Professional
Accountants, is regarded as the ethical framework
for accountants, [17].
Within the MIA-By Law (Professional Ethics,
Conduct and Practice), certified accountants are
expected to uphold five principles: integrity,
objectivity, professional competence and due care,
confidentiality, and professional behavior, [17].
Adhering to these ethical guidelines published by
accounting regulatory bodies is deemed ethical
behavior. Any actions by accountants that
contravene the established code of ethics in their
respective countries can result in reprimand and
punishment. Consequently, this study operationally
defines accountants' ethical behavior as compliance
with the ethical guidelines for accountants as
mandated by professional accounting regulatory
bodies.
2.3 Measurements of Ethical Behavior
This study will look at two measurements in
measuring the ethical behavior of accountants,
namely vignette scenarios and perceptual
statements. Vignettes refer to scenarios on ethical
behavior that the respondents are invited to react to
[9]. For example, the respondent is asked to rate
his/her agreement on the action taken by an
accountant. An illustration of an ethical behavior
vignette scenario is as follows:
“A client of an accountant refers another client
to the accountant and indicates that he expects some
small compensation from the accountant for his
services. The accountant takes the client out for
dinner.” The respondents were asked to rate their
agreement on a scale of (1) strongly disagree to (5)
strongly agree whether the action taken by the
accountant is unethical.
On the other hand, a perceptual statement refers
to direct questions or indicators used to assess or
quantify a particular construct or variable. Examples
of the perceptual statements include i) questionable
adjustments to financial records are unacceptable, ii)
accepting a customer with questionable credit is
unethical, and iii) it is unethical to allow personal
situations to influence business decisions. From
these statements, respondents were asked to rate
their agreement on a scale of 1 (strongly disagree) to
5 (strongly agree).
Previous studies have used vignette scenarios
and conducted Structural Equation Modelling
(SEM) analyses and others incorporate fuzzy logic
into their analysis, [18], [19]. As for perceptual
statements, analyses such as the chi-square test and
Kruskal-Wallis’s test were used, [20], [21].
However, none of the previous studies have
reported construct validity for vignette scenarios and
perceptual statements, to examine which of the two
measurements of ethical behavior has a better
statistical property than the other one. Thus, the
present study would like to address this gap and use
SEM to test the impact of ethical workplace culture
on accountants' ethical behavior using both vignette
scenarios and perceptual statements.
Comparing the findings from vignette scenarios
and perceptual statements is crucial to highlight the
advantages and disadvantages of each method for
evaluating the ethical behavior construct, especially
in light of the various approaches noted in the
literature. This comparative analysis is anticipated
to enhance the methodological rigor of the study and
provide valuable insights for future research in the
field of ethical behavior measurement.
2.4 The Influence of Ethical Culture at
Workplace on the Ethical Behavior
The workplace's organizational culture serves as the
fundamental system shaping the behavior of
accountants and auditors, [22]. This culture plays a
crucial role in addressing external challenges and
facilitating the adaptation of new employees to their
surroundings, [23]. Each employee contributes their
unique cultural perspective, which can either align
with or influence the culture and performance of the
workplace, [24]. Therefore, fostering a positive
working environment becomes essential to
positively impact employees.
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Several studies have explored the association
between workplace culture and ethical behavior.
[22] and [25], found a positive and significant
relationship between the workplace environment
and ethical judgment, as well as the intention to
engage in ethical behavior. Ethical behavior,
measured through vignette questions, is influenced
by independent variables such as those addressed in
CEP questions. The internal control and governance
of the organization can be improved through the
cultural practices, and it depends on the ethical
evaluation of each of the organization's members,
[26].
[27], extended this exploration by examining
ethical behavior within the workplace concerning
interactions with various stakeholders. Their study
revealed that top management's ethical decisions
significantly influence employees' ethical behavior
across a range of areas, from interactions with
superiors, customers, and fellow employees to
dealing with suppliers, competitors, government
officials, taxation matters, investors, the nature of
the product, and environmental concerns. Whether
at the group level or agency level, the ethical culture
influences the behavior of organization members,
[2].
Organizational ethical culture, as highlighted by
[28], communicates messages about acceptable and
unacceptable behavior, particularly as set by top
management. As highlighted by [23], the dominant
characteristics, organizational leadership,
management of employees, organization glue,
strategic emphasis, and criteria of success are the
key dimensions of organizational culture. Ethical
training programs embedded within organizational
practices, especially in industries like insurance,
contribute to the formation of a collective ethical
culture that shapes employee actions over time,
[29]. The core ethical values and beliefs
underpinning the organizational ethical culture are
intricately tied to the actions, deeds, and intentions
of those within that culture.
Drawing from Hunt and Vitell’s theory, which
emphasizes the influence of the environment on
ethical behavior, it is reasonable to assume that the
ethical culture within an organization positively
impacts the ethical behavior of accounting graduates
(Figure 1).
Fig. 1: Theoretical Framework
Consequently, this study proposes the
hypothesis:
H1: There exists a positive and statistically
significant relationship between workplace culture
and ethical behavior.
3 Research Method
3.1 Target Population and Sampling Process
The research population for this study comprised
accounting graduates from MIA-accredited
universities in Malaysia. Unfortunately, the total
population is unknown, and a complete sample
frame is also absent. Due to these limitations, the
required sample size could not be determined based
on the population size, and probability sampling was
not feasible. Instead, the sample size was
determined based on the complexity of the research
model, as recommended by [30], using the G*Power
calculator and the minimum sample size was found
to be 55.
Purposive sampling specifically targeted
accounting graduates who recently completed their
degrees in 2019, 2020, and 2021 was used. This is
based on the assumption that recent graduates could
recall and remain familiar with the accounting ethics
education or ethics courses taken during their
university years.
3.2 Data Collection Procedures and
Questionnaire Development
Despite the calculated minimum sample size of 55,
the study aimed to obtain a more extensive sample
and reach as many respondents as possible. A cover
letter elucidating the study's purpose and the
targeted respondents was distributed to 17 heads of
accounting programs at MIA-accredited
universities. These program heads were requested to
facilitate the distribution of the e-survey link to 100
accounting graduates from 2019, 2020, and 2021,
currently working in finance and
auditing/accounting-related fields. This
collaborative approach sought to enhance the
diversity and representation of the sample, ensuring
a robust and comprehensive data collection process.
A questionnaire was prepared based on previous
literature. Pilot testing was done, and ethical
clearance was obtained before the distribution of the
questionnaire to the respondents. For ethical work
culture at the workplace, the five-item Corporate
Ethics Scale by [31], was used. Respondents were
asked to rate their agreement on a scale of (1)
Ethical Culture
at Workplace
Ethical
Behaviour
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strongly disagree, (2) disagree, (3) neutral, (4)
agree, and (5) strongly agree.
For ethical behavior, two measurements were
used, namely vignette scenarios and perceptual
statements. Three vignette scenarios, [22], were
used in this study. The scenarios are obtaining
compensation for the introduction of a new client, a
close relationship with the existing client, and a
conflict of interest with the potential client.
Respondents were asked to rate on a 5-point Likert
scale, ranging from (1) strongly disagree to (5)
strongly agree, to rate their agreement with the
scenarios.
On the other hand, the perceptual statements
were adapted from, [20]. It covers various aspects
including loyalty, personal expenses, policy
adherence, compliance with unethical instructions,
differential treatment of employees, and company
policies. Respondents were asked to rate the
statements using a 5-point Likert scale, ranging
from (1) strongly disagree to (5) strongly agree.
4 Analysis and Result
4.1 Returned Questionnaire and Data
Screening
In this study, 344 usable responses were used for
hypothesis testing. Before hypothesis testing, four
steps of data screening procedures were conducted
as outlined by [32], which included handling
missing values, eliminating suspicious responses
and significant multivariate outliers, and the test of
multivariate data distribution. This study used
Partial Least Squares Structural Equation Modeling
(PLS-SEM) in SmartPLS 4.0.9.6, [33], for
hypothesis testing.
4.2 Demographic Profiles
Respondents of the study comprised of majority
females (83%), 34% graduated from MIA
accredited accounting programs and 48% of
respondents reported 1 to 2 years of working
experience. A summary of the respondent
backgrounds can be found in Table 1.
Table 1. Background of the Respondents
Information
%
1
Gender
Male
17
Female
83
Total
100
2
Year of Graduated from
Bachelor's Degree in
Accounting Programs
2019
32
2020
34
2021
34
Total
100
3
Name of University
Universiti Sains Islam
Malaysia (USIM)
22
Universiti Teknologi
MARA (UiTM)
13
Universiti Islam
Antarabangsa Malaysia
(UIAM)
10
Universiti Malaysia
Terengganu (UMT)
8
Universiti Putra Malaysia
(UPM)
7
Universiti Utara Malaysia
(UUM)
7
Universiti Tunku Abdul
Rahman (UNITAR)
6
Others (Below than 20
responses)
27
Total
100
4
Job Designation
Accountant
45
Auditor
39
Tax Agent
13
Others (Finance/etc)
3
Total
100
5
Type of Company
Big 4 Firm
(PwC/KPMG/Deloitte/EY)
6
Non-Big 4 Firm
58
Commercial Company
32
Public Sector
4
Total
100
6
Working Experience
since Graduated
Less than 1 year
34
1 to 2 years
48
More than 2 years
18
Total
100
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4.3 Construct Validity Test based on
Measurement Model Assessments
In Structural Equation Modelling (SEM), whether
using CB-SEM or PLS-SEM, the initial step before
testing hypothesized relationships is to conduct a
construct validity test through measurement model
assessments, [34]. In PLS-SEM, this assessment
involves outer loadings, internal consistency
reliability through composite reliability coefficient
(rho c), convergent validity through the average
variance extracted (AVE) statistic, and discriminant
validity through the HTMT ratio, [35]. The focus of
this paper is to compare the use of perceptual
statements and vignette scenarios for measuring the
ethical behavior construct. Accordingly, two sets of
measurement model assessments were presented—
one demonstrating the constructs of ethical culture
at the workplace (ECW) and ethical behavior (EBS)
measured through perceptual statements, and
another depicting ECW and EBV measured using
vignette scenarios. The findings of the analysis for
both measurements are presented in the following
tables.
4.3.1 Construct Validity of ECW and EB
(Perceptual Statements)
The initial step involves assessing the loading of the
indicators, specifically the outer loadings. An
acceptable threshold for outer loadings is 0.5,
provided that the construct meets the convergent
validity requirement of an AVE of 0.5 and above,
[36]. In this case, the AVE for both ECW and EBS
constructs exceeded the 0.5 threshold after
excluding three items from EBS (refer to Table 2).
Additionally, the internal consistency reliability for
both constructs meets the rho c threshold at 0.708,
with readings for ECW at 0.833 and EBS at 0.870,
respectively. Simultaneously, the HTMT ratio is
assessed to determine the discriminant validity
between the constructs under study. The divergence
and correlation between different constructs must be
minimally correlated, with an HTMT ratio below
0.85, [37] or at least below 0.90 [38]. The result
showed the discriminant validity requirement Is
met.
Table 2. Result of the Measurement Model
Assessment for ECW and EBS (Perceptual
Statements)
Constructs
Items
Loadings
Rho c
AVE
HTMT
Ratio
Ethical
Culture at
the
Workplace
(ECW)
ECW1
0.644
0.833
0.503
0.837
ECW2
0.576
ECW3
0.777
ECW4
0.801
ECW5
0.723
Ethical
Behavior
(EBS)
EBS1
0.783
0.870
0.527
EBS2
0.728
EBS4
0.663
EBS5
0.694
EBS6
0.723
EBS9
0.758
*Note: Items EBS3, EBS7, and EBS8 were removed to
satisfy the convergent validity requirement.
4.3.2 Construct Validity of ECW and EBV
(Vignette Scenarios)
The ECW and EBV (vignette scenarios) used the
same construct validity tests as the ECW and EBS
measurement models. Unlike the ECW-EBS
measurement model, the ECW construct's
convergent validity required the removal of items
ECW4 and ECW5. The rho c coefficient displayed
satisfactory values, proving that ECW and EBV
both met the requirements for internal consistency
reliability. The HTMT ratio which is used to
evaluate the construct's discriminant validity shows
no problems between the investigated constructs,
according to results in Table 3.
Table 3. Result of the Measurement Model
Assessment for ECW and EBV (Vignette Scenarios)
Constructs
Items
Loadings
Rho c
AVE
HTMT
Ratio
Ethical
Culture at the
Workplace
(ECW)
ECW1
0.784
0.779
0.550
0.488
ECW2
0.872
ECW3
0.525
Ethical
Behavior
(EBS)
EBV1
0.737
0.784
0.548
EBV2
0.695
EBV3
0.787
*Note: Items ECW4 and ECW5 were removed to satisfy
the convergent validity requirement.
Overall, it can be seen that the measurement
model for ethical behavior measured using vignette
scenario (EBV) and ethical culture at the workplace
(ECW), have provided insights into the structure of
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these dimensions. When the relationship of ECW
and EBV (vignette scenarios) was examined, ECW4
and ECW5 had to be deleted to achieve convergent
validity. However, when the relationship between
ECW and EBS (perceptual statements) was
examined, no items were deleted, which suggests
that the original set of ECW items remained
effective in capturing the ethical behavior construct
adequately.
4.4 Hypothesis Testing based on Structural
Model Assessment
The structural model results for both the ECW-EBS
model and the ECW-EBV model show a statistically
significant positive impact of ethical culture at the
workplace on ethical behavior. These findings are
robustly supported by several key indicators,
including t-values exceeding 1.645 in a one-tailed
test, p-values less than 0.05, and confidence
intervals for the path coefficients not straddling 0
(Table 4).
Table 4. Results of Structural Model Assessments
Relati
onship
s
β
S
D
t -
val
ue
p-
val
ue
CI
Eff
ect
Siz
e
(f2)
Expla
nator
y
Power
(R2)
Deci
sion
L
L
U
L
ECW
EBS
0.
66
9
0.
03
4
19.
43
4
<0.
00
1
0.
62
0
0.
73
4
0.8
09
0.446
Supp
orted
ECW
EBV
0.
32
8
0.
05
4
6.0
45
<0.
00
1
0.
02
4
0.
42
6
0.2
44
0.105
Supp
orted
The findings of this study emphasize that ethical
workplace culture positively and significantly
influences ethical behavior. This conclusion aligns
with previous studies that have demonstrated the
impact of organizational culture on employee
behavior, [20], [25], [27]. Drawing on deep learning
theory, informal learning spaces, such as the
workplace, are identified as catalysts for the deep
learning process. Hunt and Vitell's theory further
elucidates that the professional environment plays a
crucial role in shaping the ethical judgment and
behavior of individuals. Thus, these two theories
collectively provide insights into the relationship
among these variables. Establishing an ethical
environment becomes imperative to foster positive
values and enhance the ethical behavior of
accounting graduates.
5 Discussion and Implications
For the first objective of the study which is to
empirically assess the impact of ethical workplace
culture on the ethical behavior of accounting
graduates, it was found that ethical culture at the
workplace exhibit a positive and significant
relationship with the ethical behavior of accounting
graduates. Interestingly, both the relationships
between Ethical Culture at Work (ECW) to Ethical
Behavior (EB) and ECW to Ethical Behavior
Variation (EBV) yield similar results. Consequently,
this supports the hypothesis, drawing from Hunt and
Vitell’s theory, effectively elucidating the link
between the ethical culture or environment in the
workplace and the behavior of accounting
graduates. Thus, objective number 1 has been
achieved.
However, the comparison of the structural
model results between the ECW-EBS model and the
ECW-EBV model reveals notable distinctions in
their impact on ethical behavior. Both models
demonstrate a statistically positive effect of ethical
culture at the workplace on ethical behavior, as
indicated by t-values above 1.645 (one-tailed test),
p-values less than 0.05, and confidence intervals
where the upper and lower limits do not straddle
between 0, [32].
Despite the shared positive effect, the ECW-
EBS model exhibits distinct advantages across
various dimensions. It outperforms the ECW-EBV
model in terms of a higher path coefficient, a larger
effect size, and greater explanatory power. In
specific terms, the ECW-EBS model displays a path
coefficient of 0.669, a substantial effect size of
0.809 (classified as large according to [39]), and a
moderate explanatory power of 0.446 (according to
[40]). On the other hand, the ECW-EBV model,
while still showcasing a statistically positive effect,
presents a comparatively lower path coefficient of
0.328, a medium effect size of 0.244 (categorized as
medium according to [39]), and a weaker
explanatory power of 0.105 (classified as weak
according to [40]). These results marked the
achievement of objective number 2.
Thus, for the second objective of the study
which is to compare the statistical results of two
different measurements of ethical behavior using
perceptual statements and vignettes, the study found
that the ECW-EBS model provides a better
explanation of the relationship between ethical
behavior and workplace culture, as evidenced by its
higher path coefficient, larger effect size, and more
explanatory power as opposed to the ECW-EBV
model.
The observed discrepancy in item features
between the two models may be explained by the
innate variations in how participants comprehend
and react to hypothetical situations (vignettes
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DOI: 10.37394/23207.2024.21.73
Hasnah Haron, Nurul Nazlia Jamil,
Nathasa Mazna Ramli, Fatin Arissa Parsimin,
Azim Azuan Osman
E-ISSN: 2224-2899
881
Volume 21, 2024
scenario) in contrast to more straightforward
assertions (perpetual statements), [8], [9]. These
results show the importance of taking into account
the difficulties using different measurement
techniques such as the measurement of ethical
behavior using vignette scenarios (EBV) and
perceptual statements (EBS). The ECW-EBS
model’s requirement that requires two items to be
eliminated highlights the need to be cautious when
interpreting data and choosing measurement
techniques for the specifics of the construct and
study setting.
6 Conclusion and Recommendation
This study has shown a significant and positive
relationship between culture at the workplace and
the ethical behavior of Malaysian accounting
graduates using two measurements of ethical
behavior, namely vignette scenarios and perceptual
statements.
The ECW-EBS model was found to give a
better explanation of the relationship between
ethical behavior and workplace culture, as compared
to the ECW-EBV model.
This could be because perceptual statements are
easier to comprehend by the respondents as opposed
to vignette scenarios. Statements are easier to
understand because of their simplicity, but vignette
scenarios may not be able to adequately capture
real-life situations due to their inherent complexity.
Thus, researchers should choose their
measurement instruments carefully and ensure the
instrument is appropriate for the phenomenon being
studied, which will help to improve the precision of
the findings of the research.
Due to the scarcity of studies comparing the
application of vignette scenarios and perceptual
statement measurement items for measuring ethical
behavior, a thorough discussion and comparison of
the findings are not possible. Although direct
comparisons with previous empirical studies are not
feasible, the current findings provide novel
empirical evidence by measuring the ethical
behavior construct using two different scale
properties. Furthermore, these findings support the
notion that vignette scenario survey items are more
commonly employed in experimental research
rather than non-experimental studies, as evidenced
by their prevalence in [6] and [7].
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Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
- Hasnah Haron, a Professor in Auditing, has the
role of acquiring financial support for the project
leading to this publication, consolidating writing,
and being a correspondence author.
- Azim Azuan Osman: Expert in statistical analysis
and responsible for data processing to ensure a
quality paper.
- Nurul Nazlia Jamil: Expert in Accounting and
responsible for literature review
- Nathasa Mazna Ramli: Expert in Accounting and
responsible for methodology
- Fatin Arissa Parsimin: Assisted in data collection.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
This paper was funded by Malaysia's Ministry of
Higher Education for the Fundamental Research
Grant Scheme FRGS/1/2021/SS01/USIM/01/1.
Conflict of Interest
The authors have no conflicts of interest to declare.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.73
Hasnah Haron, Nurul Nazlia Jamil,
Nathasa Mazna Ramli, Fatin Arissa Parsimin,
Azim Azuan Osman
E-ISSN: 2224-2899
884
Volume 21, 2024