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An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context

Our minds are powerful, creative, forceful, and strong, controlling our thinking and behaviors. A series of high-profile accounting and financial scandals have been revealed in the past few decades, and the Enron case was the most representative of them all. Corporate decision-makers have traditiona...

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Autores principales: Ivascu, Larisa, Pavel, Codruta Daniela, Sarfraz, Muddassar, Arulanandam, Benedict Valentine, Tan, Hong Yip
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9241444/
https://www.ncbi.nlm.nih.gov/pubmed/35783779
http://dx.doi.org/10.3389/fpsyg.2022.911907
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author Ivascu, Larisa
Pavel, Codruta Daniela
Sarfraz, Muddassar
Arulanandam, Benedict Valentine
Tan, Hong Yip
author_facet Ivascu, Larisa
Pavel, Codruta Daniela
Sarfraz, Muddassar
Arulanandam, Benedict Valentine
Tan, Hong Yip
author_sort Ivascu, Larisa
collection PubMed
description Our minds are powerful, creative, forceful, and strong, controlling our thinking and behaviors. A series of high-profile accounting and financial scandals have been revealed in the past few decades, and the Enron case was the most representative of them all. Corporate decision-makers have traditionally enjoyed high remunerations, compensations, and social status. Hence, the underlying rationales and motivation drivers that motivate managers to conduct unethical behaviors have always been a heightened concern. This research aims to delineate the narratives of corporate governance misconducts and the underlying rationales of these unethical behaviors. This study incorporates independent variables of neuro-accounting, neuroeconomics, neuro-ethics, and human nature using a qualitative methodology. From this study, the social norm of fairness showed that the human nature of greed and selfishness would motivate corporate decision-makers to engage in any exchange that could benefit themselves, although it is unethical and illegal. Second, neuroeconomics revealed that scarcity of economic resources, level of risks and uncertainties, and expected rewards could be the factors that motivate managers to conduct unethical behaviors, especially when their remunerations are tightly linked to company performances. Third, neuro-ethics shows that managers who lack moral values, have unstable emotions, and possess negative moral intuitions or personal assumptions could be more likely to pursue their interests at the cost of others. Lastly, neuro-governance also proved that self-benefits and financial incentives will usually be the priority and would be a motivating factor for misconduct.
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spelling pubmed-92414442022-06-30 An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context Ivascu, Larisa Pavel, Codruta Daniela Sarfraz, Muddassar Arulanandam, Benedict Valentine Tan, Hong Yip Front Psychol Psychology Our minds are powerful, creative, forceful, and strong, controlling our thinking and behaviors. A series of high-profile accounting and financial scandals have been revealed in the past few decades, and the Enron case was the most representative of them all. Corporate decision-makers have traditionally enjoyed high remunerations, compensations, and social status. Hence, the underlying rationales and motivation drivers that motivate managers to conduct unethical behaviors have always been a heightened concern. This research aims to delineate the narratives of corporate governance misconducts and the underlying rationales of these unethical behaviors. This study incorporates independent variables of neuro-accounting, neuroeconomics, neuro-ethics, and human nature using a qualitative methodology. From this study, the social norm of fairness showed that the human nature of greed and selfishness would motivate corporate decision-makers to engage in any exchange that could benefit themselves, although it is unethical and illegal. Second, neuroeconomics revealed that scarcity of economic resources, level of risks and uncertainties, and expected rewards could be the factors that motivate managers to conduct unethical behaviors, especially when their remunerations are tightly linked to company performances. Third, neuro-ethics shows that managers who lack moral values, have unstable emotions, and possess negative moral intuitions or personal assumptions could be more likely to pursue their interests at the cost of others. Lastly, neuro-governance also proved that self-benefits and financial incentives will usually be the priority and would be a motivating factor for misconduct. Frontiers Media S.A. 2022-06-15 /pmc/articles/PMC9241444/ /pubmed/35783779 http://dx.doi.org/10.3389/fpsyg.2022.911907 Text en Copyright © 2022 Ivascu, Pavel, Sarfraz, Arulanandam and Tan. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
Ivascu, Larisa
Pavel, Codruta Daniela
Sarfraz, Muddassar
Arulanandam, Benedict Valentine
Tan, Hong Yip
An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context
title An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context
title_full An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context
title_fullStr An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context
title_full_unstemmed An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context
title_short An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context
title_sort exploratory study on corporate governance from neuro-governance lenses in the malaysian context
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9241444/
https://www.ncbi.nlm.nih.gov/pubmed/35783779
http://dx.doi.org/10.3389/fpsyg.2022.911907
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