49a Can_honesty_reminders_reduce_budgetary_slack_.pdf (444.2 kB)
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thesis
posted on 2020-05-14, 09:52 authored by Katherine Chi Kwan YUENThis study investigates the effect of honesty reminders on budgetary slack. Based on the self-concept maintenance theory of Mazar, Amir, and Ariely (2008), I posit that honesty reminders can reduce budgetary slack by making people more aware of their own standards of honesty and lowering their dishonesty thresholds, resulting in more honest behavior. I find strong evidence that honesty reminders reduce budgetary slack and are marginally more effective than penalties in reducing budgetary slack. Finally, I find that honesty reminders have a stronger effect on slack reduction than penalties when the payoff for slack creation is higher. |