Moral Choice Within the Financial Sector of the Shenzhen Special Economic Zone, People's Republic of China

Abstract

The following paper examines the classical agency assumptions as they might apply within a little researched region, a Special Economic Zone within the People's Republic of China. It was found that the predictive strength of the theory was again proved within the context of an experimental design model, which involved 400 employees within ten large financial sector organizations.

When faced with a significant moral hazard and the possession of private information, financial sector employees displayed a preference not to advise management about the existence of unethical practices within the workplace. An analysis of the data demographics identified female employees within the 25 to 30-year age bracket, who do not have supervisory responsibilities, as the group most at risk in this situation. It is apparent that levels of adversity to risk change depending on an employee's personal demographics.