IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v123y2014i1p125-143.html
   My bibliography  Save this article

Culture, Gender, and GMAT Scores: Implications for Corporate Ethics

Author

Listed:
  • Raj Aggarwal
  • Joanne Goodell
  • John Goodell

Abstract

Business leadership increasingly requires a master’s degree in business and graduate management admission test (GMAT) scores continue to be an important component of applications for admission to such programs. Given the ubiquitous use of GMAT scores as gatekeepers for business leadership, GMAT scores are likely to influence organizational ethical behavior through gender, cultural, and other biases in the GMAT. There is little prior literature in this area and we contribute by empirically documenting that GMAT scores are negatively related to the cultural dimensions of masculinity and power distance and are positively related to math literacy, uncertainty avoidance, and individualism. We estimate that cultural factors may account for as much as an 80-point difference in cross-national mean GMAT scores which are also related negatively to local language literacy, national educational spending, wealth per capita, wealth inequality, and gender development. Most interestingly, we also find a significant negative association of GMAT scores with ethical orientation. These findings have important implications for business schools and corporate ethics and leadership. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Raj Aggarwal & Joanne Goodell & John Goodell, 2014. "Culture, Gender, and GMAT Scores: Implications for Corporate Ethics," Journal of Business Ethics, Springer, vol. 123(1), pages 125-143, August.
    • Handle: RePEc:kap:jbuset:v:123:y:2014:i:1:p:125-143
    DOI: 10.1007/s10551-013-1800-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10551-013-1800-5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-013-1800-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dichev, Ilia D, 1999. "How Good Are Business School Rankings?," The Journal of Business, University of Chicago Press, vol. 72(2), pages 201-213, April.
    2. Aggarwal, Raj & Goodell, John W., 2010. "Financial markets versus institutions in European countries: Influence of culture and other national characteristics," International Business Review, Elsevier, vol. 19(5), pages 502-520, October.
    3. Ramírez, Andrés & Tadesse, Solomon, 2009. "Corporate cash holdings, uncertainty avoidance, and the multinationality of firms," International Business Review, Elsevier, vol. 18(4), pages 387-403, August.
    4. Gabriel Donleavy, 2008. "No Man’s Land: Exploring the Space between Gilligan and Kohlberg," Journal of Business Ethics, Springer, vol. 80(4), pages 807-822, July.
    5. Daulatram Lund, 2008. "Gender Differences in Ethics Judgment of Marketing Professionals in the United States," Journal of Business Ethics, Springer, vol. 77(4), pages 501-515, February.
    6. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2007. "Governance Matters VI: Aggregate and Individual Governance Indicators, 1996-2006," Policy Research Working Paper Series 4280, The World Bank.
    7. Clark, Melissa & Rothstein, Jesse & Schanzenbach, Diane Whitmore, 2009. "Selection bias in college admissions test scores," Economics of Education Review, Elsevier, vol. 28(3), pages 295-307, June.
    8. Yungwook Kim & Soo-Yeon Kim, 2010. "The Influence of Cultural Values on Perceptions of Corporate Social Responsibility: Application of Hofstede’s Dimensions to Korean Public Relations Practitioners," Journal of Business Ethics, Springer, vol. 91(4), pages 485-500, February.
    9. Patricia Werhane, 2008. "Mental Models, Moral Imagination and System Thinking in the Age of Globalization," Journal of Business Ethics, Springer, vol. 78(3), pages 463-474, March.
    10. Cohen, Jeffrey R. & Pant, Laurie W. & Sharp, David J., 1996. "A methodological note on cross-cultural accounting ethics research," The International Journal of Accounting, Elsevier, vol. 31(1), pages 55-66.
    11. Kirca, Ahmet H. & Cavusgil, S. Tamer & Hult, G. Tomas M., 2009. "The effects of national culture on market orientation: Conceptual framework and research propositions," International Business Review, Elsevier, vol. 18(2), pages 111-118, April.
    12. Gary Clayton & Tom Cate, 2004. "Predicting MBA no-shows and graduation success with discriminate analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 10(3), pages 235-243, October.
    13. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    14. Chow, Chee W. & Kato, Yutaka & Shields, Michael D., 1994. "National culture and the preference for management controls: An exploratory study of the firm--Labor market interface," Accounting, Organizations and Society, Elsevier, vol. 19(4-5), pages 381-400.
    15. Adrian Pagan, 1986. "Two Stage and Related Estimators and Their Applications," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(4), pages 517-538.
    16. Stephan Klasen, 2002. "Low Schooling for Girls, Slower Growth for All? Cross-Country Evidence on the Effect of Gender Inequality in Education on Economic Development," The World Bank Economic Review, World Bank, vol. 16(3), pages 345-373, December.
    17. Volkema, Roger J., 2004. "Demographic, cultural, and economic predictors of perceived ethicality of negotiation behavior: A nine-country analysis," Journal of Business Research, Elsevier, vol. 57(1), pages 69-78, January.
    18. Mark S. Schwartz, 2002. "A Code of Ethics for Corporate Code of Ethics," Journal of Business Ethics, Springer, vol. 41(1), pages 27-43, November.
    19. Yamin, Mo & Golesorkhi, Sougand, 2010. "Cultural distance and the pattern of equity ownership structure in international joint ventures," International Business Review, Elsevier, vol. 19(5), pages 457-467, October.
    20. Buck, Trevor & Liu, Xiaohui & Ott, Ursula, 2010. "Long-term orientation and international joint venture strategies in modern China," International Business Review, Elsevier, vol. 19(3), pages 223-234, June.
    21. Harris, Simon & Carr, Chris, 2008. "National cultural values and the purpose of businesses," International Business Review, Elsevier, vol. 17(1), pages 103-117, February.
    22. Beverly Kracher & Robert Marble, 2008. "The Significance of Gender in Predicting the Cognitive Moral Development of Business Practitioners Using the Sociomoral Reflection Objective Measure," Journal of Business Ethics, Springer, vol. 78(4), pages 503-526, April.
    23. Oxley, Les & McAleer, Michael, 1993. "Econometric Issues in Macroeconomic Models with Generated Regressors," Journal of Economic Surveys, Wiley Blackwell, vol. 7(1), pages 1-40.
    24. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-247, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feng, Jingwen & Goodell, John W. & Shen, Dehua, 2022. "ESG rating and stock price crash risk: Evidence from China," Finance Research Letters, Elsevier, vol. 46(PB).
    2. Kodila-Tedika, Oasis, 2018. "Does Masculinity Matter for Female Leaders? Evidence in cross-section countries," MPRA Paper 84776, University Library of Munich, Germany.
    3. Ashraf, Badar Nadeem & El Ghoul, Sadok & Goodell, John W. & Guedhami, Omrane, 2022. "What does COVID-19 teach us about the role of national culture? Evidence from social distancing restrictions," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 80(C).
    4. Pesta, Bryan J. & Fuerst, John & Kirkegaard, Emil O.W. & Papaleo, Brent, 2019. "Does intelligence explain national score variance on graduate admissions exams?," Intelligence, Elsevier, vol. 73(C), pages 8-15.
    5. Goodell, John W., 2019. "Comparing normative institutionalism with intended rationality in cultural-finance research," International Review of Financial Analysis, Elsevier, vol. 62(C), pages 124-134.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goodell, John W., 2019. "Comparing normative institutionalism with intended rationality in cultural-finance research," International Review of Financial Analysis, Elsevier, vol. 62(C), pages 124-134.
    2. Goodell, John W. & Goyal, Abhinav & Urquhart, Andrew, 2021. "Uncertainty of uncertainty and firm cash holdings," Journal of Financial Stability, Elsevier, vol. 56(C).
    3. Goodell, John W., 2017. "Trust and Governance: The conditioning role of national culture," Finance Research Letters, Elsevier, vol. 23(C), pages 80-86.
    4. Kearney, Colm, 2000. "The determination and international transmission of stock market volatility," Global Finance Journal, Elsevier, vol. 11(1-2), pages 31-52.
    5. Stuart Landon & Constance E. Smith, 1998. "Quality Expectations, Reputation, and Price," Southern Economic Journal, John Wiley & Sons, vol. 64(3), pages 628-647, January.
    6. Lewellyn, Krista B. & Bao, Shuji ‘Rosey’, 2014. "A cross-national investigation of IPO activity: The role of formal institutions and national culture," International Business Review, Elsevier, vol. 23(6), pages 1167-1178.
    7. Diamandis, Panayiotis F. & Kouretas, Georgios P. & Zarangas, Leonidas, 2007. "Dual foreign currency markets and the role of expectations: Evidence from the Pacific Basin countries," Research in International Business and Finance, Elsevier, vol. 21(2), pages 238-259, June.
    8. Kearney, Colm & Daly, Kevin, 1997. "Monetary volatility and real output volatility: An empirical model of the financial transmission mechanism in Australia," International Review of Financial Analysis, Elsevier, vol. 6(2), pages 77-95.
    9. Kaufmann, Daniel & Mehrez, Gil & Schmukler, Sergio L., 2005. "Predicting currency fluctuations and crises: Do resident firms have an informational advantage?," Journal of International Money and Finance, Elsevier, vol. 24(6), pages 1012-1029, October.
    10. Lindner, Thomas & Puck, Jonas & Stocco, Giulia, 2023. "Asymmetric risk perception and firm financing in the institutional envelope," International Business Review, Elsevier, vol. 32(3).
    11. Hutson, Elaine & Kearney, Colm, 2005. "Merger arbitrage and the interaction between target and bidder stocks during takeover bids," Research in International Business and Finance, Elsevier, vol. 19(1), pages 1-26, March.
    12. Aggarwal, Raj & Goodell, John W., 2018. "Sovereign wealth fund governance and national culture," International Business Review, Elsevier, vol. 27(1), pages 78-92.
    13. Hutson, Elaine & Kearney, Colm, 2001. "Volatility in stocks subject to takeover bids: Australian evidence using daily data," Journal of Empirical Finance, Elsevier, vol. 8(3), pages 273-296, July.
    14. Divino, J.A. & McAleer, M.J., 2008. "Modelling sustainable international tourism demand to the Brazilian Amazon," Econometric Institute Research Papers EI 2008-22, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    15. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Governance, capital flight and industrialisation in Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    16. Claus Brand & Daniel Buncic & Jarkko Turunen, 2010. "The Impact of ECB Monetary Policy Decisions and Communication on the Yield Curve," Journal of the European Economic Association, MIT Press, vol. 8(6), pages 1266-1298, December.
    17. Patrick Saart & Jiti Gao & Nam Hyun Kim, 2014. "Semiparametric methods in nonlinear time series analysis: a selective review," Journal of Nonparametric Statistics, Taylor & Francis Journals, vol. 26(1), pages 141-169, March.
    18. Gaoussou Diarra & Sébastien Marchand, 2011. "Environmental Compliance, Corruption and Governance: Theory and Evidence on Forest Stock in Developing Countries," Working Papers halshs-00557677, HAL.
    19. McKenzie, C.R., 1997. "The properties of some two step estimators of ARMA Models," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 43(3), pages 451-456.
    20. François-Éric Racicot & Raymond Théoret, 2022. "Tracking market and non-traditional sources of risks in procyclical and countercyclical hedge fund strategies under extreme scenarios: a nonlinear VAR approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-56, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:123:y:2014:i:1:p:125-143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.