Why Family Firms Engage in Corruption? Effects of CEO's Financial Aspiration and Religious Belief
We integrate insights behavioral theory of the firm, social psychology, and family business literature to examine the role of CEO＇s financial aspiration in engaging in corrupt transactions. Building on a survey of 196 family firms in China, we found that the relationship between realization extent of CEO＇s financial aspiration and likelihood of engaging in corruption is inverted U shaped. We also found CEO＇s religious belief as an important moderator between CEO＇s financial aspiration and firm-level corruption. Religious belief decreases the CEO＇s motivation to offer bribes to government officials to achieve short-term economic benefits via strict ethical judgement, which in turn weakens the positive effects of low level achievement of CEO＇s financial aspiration on family firm＇s corruption.