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)