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Family Matters: Exploring the Link Between Parental and Executive Financial Misconduct

Author

Listed:
  • Jenni Kallunki
  • Juha‐pekka Kallunki
  • Wayne Landsman
  • Emma‐riikka Myllymäki

    (Audencia Business School)

  • Lasse Niemi

Abstract

ABSTRACT Using a novel data set of misconduct records for Finnish CEOs and directors and their parents, we explore whether corporate executives' financial misconduct is associated with similar behavior by their parents. Controlling for various other factors of executive financial misconduct, we find that executives are significantly more likely to engage in financial misconduct, including accounting, tax, and other financial offenses, if their parents have a history of financial misconduct. This intergenerational association is stronger when the parental misconduct is more severe. Additional findings reveal that growing up in high‐misconduct municipalities and cohabiting with spouses who engage in financial misconduct are also associated with a higher likelihood of executive misconduct, indicating that such behaviors may be shaped by broader socialization processes that extend beyond the immediate family. Although our analyses do not establish causal relationships, the collective evidence presented in this study offers insights into why some corporate executives engage in misconduct while others do not.

Suggested Citation

  • Jenni Kallunki & Juha‐pekka Kallunki & Wayne Landsman & Emma‐riikka Myllymäki & Lasse Niemi, 2026. "Family Matters: Exploring the Link Between Parental and Executive Financial Misconduct," Post-Print hal-05447148, HAL.
    • Handle: RePEc:hal:journl:hal-05447148
    DOI: 10.1111/1475-679X.70028
    Note: View the original document on HAL open archive server: https://hal.science/hal-05447148v1
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