Hypothesis 1a predicts that an individual with a more idealistic ethical orientation will be less likely to engage in earnings management behavior, and the observed path coefficient (-0.04) is significant and supports this hypothesis. Similarly, Hypothesis 1b predicts that an individual with a relativistic ethical orientation will be more likely to engage in earnings
management behavior, suggesting a positive relationship between relativism and earnings management behavior. The significant path coefficient (0.33) supports hypothesis 1b. These results are consistent with Douglas and Wier (2000)