The Effect of Prenatal Testosterone on Misreporting Behavior

• In Event: Applying General Strain Theory, Psychological Entitlement, and Effect of Prenatal Testosterone

Abstract

This paper is a proposal for an early work in progress. In this study, we propose to
investigate whether prenatal testosterone influences misreporting behavior. Increased prenatal
testosterone is associated with greater risk-taking behavior and digit ratios (the 2D:4D and rel2
ratios) are a proxy of prenatal testosterone. Using an experiment that allows individuals to engage
in misreporting behavior, we predict that individuals are more likely to engage in misreporting
when the task environment is competitive and the task context is financial. We expect that
individuals who engage in misreporting will have higher levels of prenatal testosterone exposure
(i.e., lower digit ratios). Further, we expect that a non-competitive task environment and an ethical
task context will mitigate the effects of prenatal testosterone. This study will contribute to the
forensic and managerial accounting literatures and have implications for practice.

Authors

• Kristina Colleen Demek, University of Central Florida

• Darin Kip Holderness, West Virginia University

• Eric N Johnson, University of Wyoming