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Shareholder value ideology, reciprocity and decision making in moral dilemmas.


by Tangpong, Charnchai^Pesek, James G.
Journal of Managerial Issues • Fall, 2007 •

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(1) The information in italics is the shareholder value manipulation (presented only to participants in experimental groups #1 and #3), whereas the information in italics and bold is the reciprocity manipulation (presented only to participants in experimental groups #2 and #3).

Charnchai Tangpong

Assistant Professor of Management

North Dakota State University

James G. Pesek

Professor of Management

Clarion University of Pennsylvania Table 1. Selected Sample Profile Demographics Percent Gender

Male 52

Female 48 Age

Less than 30 years 93

30 years and above 7 Ethnicity

White 88

Non-White 12 Class Standing

Juniors 29

Seniors 60

Graduate Students 11 Currently Employed

Yes 61

No 39 Table 2. Descriptive Statistics

Decision Outcomes

Vignette #1

(Supplier-related)

Unfavorable Favorable

Decision Decision Control Group: No Manipulation 38.61% 61.39% Exp. Group #1: Shareholder Value

Manipulation 54.76% 45.24% Exp. Group #2: Reciprocity Manipulation 26.25% 73.75% Exp. Group #3: Both Manipulations 40.00% 60.00%

Decision Outcomes

Vignette #2

(Customer-related)

Unfavorable Favorable

Decision Decision Control Group: No Manipulation 20.79% 79.21% Exp. Group #1: Shareholder Value

Manipulation 27.38% 72.62% Exp. Group #2: Reciprocity Manipulation 18.75% 81.25% Exp. Group #3: Both Manipulations 24.00% 76.00%

Decision Outcomes

Vignette #3

(Employee-related)

Unfavorable Favorable

Decision Decision Control Group: No Manipulation 71.29% 28.71% Exp. Group #1: Shareholder Value

Manipulation 77.38% 22.62% Exp. Group #2: Reciprocity Manipulation 57.50% 42.50% Exp. Group #3: Both Manipulations 69.33% 30.67% Table 3. Results of Logistic Regression Analyses

Dependent Variable:

Vignette #1 Decision Outcome

(Supplier-related)

Control 1 (B (b)) Model 1 (B (b)) Control Variables Course Level -0.34 ([dagger]) -0.35 ([dagger])

(1.20) (0.20) Gender -0.30 -0.35

(0.23) (0.24) Age Group 0.00 0.05

(0.24) (0.24) Managerial Experience -0.04 -0.06

(0.07) (0.07) Work Experience 0.02 0.03

(0.04) (0.04) Ethnicity 0.19 0.14

0.40 (0.41) Independent Variables Shareholder Value (H1) 0.63*

(0.31) Reciprocity (H2) -0.70*

-0.34 Interaction Term Shareholder Value x 0.04

Reciprocity (H3) (0.48) Chi-Square 7.69 23.04** -2 Log Likelihood (Log L) 435.48 420.13 D (a): -2Log [L.sub.control] - 15.35 **

(-2Log [L.sub.model])

Dependent Variable:

Vignette #2 Decision Outcome

(Customer-related)

Control 2 (B (b)) Model 2 (B (b)) Control Variables Course Level -0.07 -0.07

(0.23) (0.23) Gender 0.31 0.31

(0.27) (0.27) Age Group -0.01 -0.01

(0.28) (0.28) Managerial Experience -0.06 -0.06

(0.08) (0.08) Work Experience 0.02 0.03

(0.05) (0.05) Ethnicity 0.34 0.31

(0.50) (0.50) Independent Variables Shareholder Value (H1) 0.19

(0.36) Reciprocity (H2) -0.25

-0.39 Interaction Term Shareholder Value x 0.28

Reciprocity (H3) (0.54) Chi-Square 2.94 4.77 -2 Log Likelihood (Log L) 347.82 345.99 D (a): -2Log [L.sub.control] - 1.83

(-2Log [L.sub.model])

Dependent Variable:

Vignette #3 Decision Outcome

(Employee-related)

Control 3 (B (b)) Model 3 (B (b)) Control Variables Course Level 0.65 ** 0.69 **

(0.22) (0.23) Gender -0.07 -0.10

(0.25) (0.25) Age Group -0.3 -0.27

(0.25) (0.25) Managerial Experience -0.05 -0.07

(0.06) (0.07) Work Experience 0.01 0.02


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COPYRIGHT 2007 Pittsburg State University - Department of Economics Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.


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