Bibliographic Details
| Title: |
The Effect of Financial Resources on Misconduct: Evidence from Lottery Ticket Sales. |
| Authors: |
Frake, Justin1 (AUTHOR) jfrake@umich.edu, Byun, Heejung2 (AUTHOR) byun21@purdue.edu, Kim, Jihyeon3 (AUTHOR) kim3579@purdue.edu |
| Source: |
Organization Science. Jan/Feb2025, Vol. 36 Issue 1, p145-165. 21p. |
| Subject Terms: |
*Organizational sociology, Lottery tickets, Economic sociology, Social responsibility, Measurement errors |
| Abstract: |
We investigate the influence of financial resources on a firm's propensity for misconduct. Previous studies offer conflicting predictions regarding the relationship, and much of the empirical evidence suffers from issues like selection, measurement error, reverse causality, and omitted variable bias. Leveraging a difference-in-differences design, we first examine quasirandom fluctuations in retailers' financial resources resulting from large windfalls from selling winning lottery tickets. Our results suggest that an increase in financial resources from selling a large winning lottery ticket reduces retailers' tobacco sales to minors. Next, to rule in strain theory and to rule out alternative explanations, we leverage a second natural experiment, heterogeneity analysis, an alternate measure of misconduct, and an online randomized experiment. In doing so, we provide plausibly causal evidence on the relationship between a firm's financial resources and its propensity for misconduct and provide potentially useful findings for policymakers and regulators. Funding: This work was supported by the Blake Family Fund for Ethics, Leadership, and Governance at Purdue University. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2023.17541. [ABSTRACT FROM AUTHOR] |
|
Copyright of Organization Science is the property of INFORMS: Institute for Operations Research & the Management Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) |
| Database: |
Business Source Complete |
|
Full text is not displayed to guests. |
Login for full access.
|
