Power distance and dishonest behavior

Abstract

Despite an extensive literature on the determinants of dishonesty, our understanding of how cultural values influence such behavior is limited. To address this gap, we conduct experiments to examine whether power distance, a cultural dimension identified by Hofstede (1984) and defined as the extent to which an individual accepts that power is unequally distributed, affects dishonest behavior. We find that power distance is not only positively correlated with dishonest behavior at both the individual and the country level, but also causally affects the likelihood of engaging in dishonest behavior. Our findings shed light on the role of cultural values in dishonest behavior.