For the Accounting Profession, Leadership Matters Regarding Ethical Climate Perceptions
39 Pages Posted: 18 Jul 2014
Date Written: January 14, 2014
We tested the hypothesis advanced by Mannarelli (2006) and Early and Davenport (2010) that professional accounting organizations would benefit from a transformational leadership style. Eleven CPA firms were surveyed to test the correlative relationship between three perceived leadership styles (i.e., transformational, transactional, and passive-avoidant) and the workplace ethical climate (i.e., caring, law code, rules, instrumental, and independence). Using the Multifactor Leadership Questionnaire (Bass & Avolio, 2010) and the Ethical Climate Questionnaire (Victor & Cullen, 1988), data provided by 103 respondents showed that transformational leadership style is the most effective, transactional is not effective, and passive-avoidant leadership style is deleterious to subordinates’ perception of the preferred ethical climates.
Keywords: Accounting Profession, Leadership, Ethical Climate, Transformational Leadership
JEL Classification: C30, L20, M40, Y10
Suggested Citation: Suggested Citation