Moderation Of Moral Identity In Ethical Judgement And Moral Intention Accounting Students

Abstract

This study aims to determine the factors influencing ethical considerations and moral intentions (such as gender, perceived moral intensity, and perceived moral culture) with moral identity as a moderator. This study uses a survey method for data collection. The research respondents were 169 Hayam Wuruk Perbanas University accounting students who had taken audit courses—data analysis technique using SEM-PLS. The study results show that (1) ethical judgment is only influenced by perceived moral culture. In contrast, moral intention can be influenced by gender, perceived moral intensity, perceived moral culture with moral intention, and moral identity. (2) Moral identity can be a moderator of the effect of perceived moral intensity on moral intention and the influence of perceived moral culture on ethical judgment. This finding has implications for universities to provide a learning process about ethical dilemma cases not only in ethics courses but also in competency courses such as auditing practice.

Full text

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MODERATION OF MORAL IDENTITY IN ETHICAL JUDGEMENT AND
MORAL INTENTION ACCOUNTING STUDENTS
Volume: 2
Number: 1
Page: 33 - 41
Riski Aprillia NITA1, Putri WULANDITYA2, Nurul Hasanah Uswati DEWI3
1,2,3Accounting Department, Faculty of Economics and Business, University of
Hayam Wuruk Perbanas, Indonesia
Corresponding author: Putri Wulanditya
E-mail: putri@perbanas.ac.id
Article History:
Received: 2023-05-30
Revised: 2023-06-21
Accepted: 2023-07-15
Abstract:
This study aims to determine the factors influencing ethical judgment and moral
intentions (such as gender, perceived moral intensity, and perceived moral
culture) with moral identity as a moderator. This study uses a survey method
for data collection. The research respondents were 169 Hayam Wuruk Perbanas
University accounting students who had taken auditing courses. The data
analysis technique of this research uses SEM-PLS. The research results show
that (1) ethical judgment is only influenced by perceived moral culture.
Conversely, moral intentions can be influenced by gender, perceived moral
intensity, perceived moral culture with moral intentions, and moral identity.
Unfortunately, this research cannot prove the influence of ethical judgments on
moral intentions. (2) Moral identity can be a moderator of the influence of
perceived moral intensity on moral intentions and the influence of perceived
moral culture on ethical judgment. This finding has implications for universities
to provide a learning process about cases of ethical dilemmas in ethics courses
and competency courses such as auditing practice.
Keywords: Moral identity, Ethical judgment, Moral intention, Accounting
Students
Cite this as: NITA, R.A., WULANDITYA, P., DEWI, N.H.U. (2023). “Moderation
of Moral Identity In Ethical Judgement And Moral Intention Accounting.”
Journal of Governance, Taxation, and Auditing, 2 (1), 33 - 41.
INTRODUCTION
Ethical considerations are necessary for corporate governance, especially in solving business
problems. Decision-making in business should not only be assessed in terms of profits but also meet
ethically correct criteria (Fery, 2021). Ethical considerations are related to judging from a moral point
of view whether or not the various choices of actions arise (Suliani & Marsono, 2010). In the theory
put forward by Rest (1986), ethical considerations are an essential stage of an ethical decision-
making process. The ethical dilemmas faced by individuals can bring up various choices of
considerations that can direct individuals in forming intentions to behave then. Considerations that
prioritize ethics will encourage individuals to have good moral intentions.
Ethical actions from business people only appear slowly; it needs a learning process that can
be started by attending formal education. As accounting students as prospective professional
accountants and later become business people, it is essential to be equipped to make ethical decisions
(Apriyana & Puspita, 2018). Learning case studies about the description of ethical dilemmas faced
by an accountant are proven to be able to increase the good moral intentions of accounting students.
Therefore, this research is motivated to investigate what factors can influence accounting students'
ethical judgment and moral intentions.
Previous studies that have investigated the ethical considerations and moral intentions of
accounting students include Yusnaini & Meirawati (2023), Apriyana & Puspita (2018), and Pierce &
Sweeney (2010). Yusnaini & Meirawati's study (2023) found that perceived moral intensity is directly
and significantly related to ethical judgment and moral intention. In addition, they also found a

34
relationship between ethical judgment, moral intention, and ethical behavior. The research results
of Apriyana & Puspita (2018) show that moral intensity, as measured in perceived overall harm and
perceived social pressure, affects accounting students' ability to make moral judgments. Pierce &
Sweeney (2010) examined C.A. professional program students and found that gender-perceived
moral intensity and perceived moral culture mutually influence ethical decision-making.
The presentation of the results of previous research shows that there are still research gaps.
Nawfel & Xiang (2021) argue that several previous studies have investigated accountants' ethical
decision-making only considering individual, contextual, and situational factors. Even though there
is still a crucial factor in making ethical decisions for an accountant, namely moral identity, moral
identity comes from the conception of moral psychology, which shows the importance of morality
for a person (Hardy & Carlo, 2011) and can provide moral encouragement to individuals (Aquino
et al., 2009). Based on these reasons, this study adds moral identity as a moderator between gender
variables, perceived moral intensity, perceived moral culture, ethical judgment, and moral intention.
Thus, the research problem formulation is: Can gender influence ethical judgment and moral
intentions?
A. Can perceived moral intention influence ethical judgment and moral intention?
B. Can perceived moral culture influence ethical judgment and moral intention?
C. Can moral identity affect ethical judgment and moral intention?
D. Can moral identity moderate the influence of gender on ethical judgment and moral intention?
E. Can moral identity moderate the effect of perceived moral intention on ethical judgment and
moral intention?
F. Can moral identity moderate the effect of perceived moral culture on ethical judgment and
moral intention?
G. Can ethical judgment affect moral intention?
Based on the background description and formulation of the problem above, the conceptual
framework can be described as follows.
Source: Author 2023
Figure 1. Research Framework
METHODS
This research is included in the type of quantitative research. Based on the objectives, this
research is categorized as associative research, which analyzes the relationship between a variable
Gender
Perceived moral
intention
Perceived moral
culture
Ethical judgment
Moral intention
Moral Identity

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and other variable (Ulum et al., 2021, p. 102). This study wants to examine the effect of gender (X1),
perceived moral intensity (X2), and perceived moral culture (X3) on ethical judgment (Y1) and moral
intention (Y2) with moral identity (M) as a moderator. The sample of this study were students
majoring in accounting at Hayam Wuruk Perbanas University who met the criteria, namely having
taken Auditing, Auditing Practice, or Information Systems Auditing courses. Data collection was
carried out by distributing research questionnaires (paper-based). The questionnaire compiled refers
to the research by Pierce & Sweeney (2010) and Nawfel & QingXiang (2021). The data analysis
technique of this study uses the Partial Least Square-Structural Equation Model (PLS-SEM) with the
stages of testing: (1) composite reliability, (2) convergent validity, (3) discriminant validity, (4)
collinearity, and (5) evaluation model.
RESULT AND DISCUSSION
Descriptive Statistics. Respondents to this study were 169 students at Perbanas University of
Hayam Wuruk who met the sample criteria. However, five people still needed to complete the
research questionnaire, so 164 data were processed. Table 1 presents descriptive statistics from the
respondents' demographic data. Respondents' ages ranged from 19 to 24 years. Respondents are
undergraduate and diploma accounting students. The majority of respondents are aged 21-22 years
with a GPA of more than 3.51.
Table 1. Result of Descriptive Statistics
Demographic Data
Category
Frequency
Percent
Age
19-20 years
21-22 years
23-24 years
13
140
11
7.9%
85.4%
6.7%
GPA
Less than 3.00
3.01-3.50
More than 3.51
4
30
130
2.4%
18.3%
19.3%
Total
164
100%
Source: Data Processed 2023
Measurement model results. Table 2 shows the results of the composite reliability test and
convergent validity. The minimum composite reliability value in PLS-SEM analysis must exceed 0.7
(Hair et al., 2014), and convergent validity can be seen from the loading factor value > 0.7 and the
results of Average Variance Extracted (AVE) > 0.5 (Hair et al., 2017). There are six items (X2.2.1,
X2.2.2, X2.3.3, X2.3.4, X2.3.5, X2.3.6) that are not reliable in measuring perceived moral intensity and
two items (X3.1.1, X3.1.2) which are not reliable in measuring perceived moral culture because the
loading factor value is below 0.7. Therefore, unreliable items are removed. After removing these
items, the Composite Reliability (C.R.) was all above 0.7, and the Average Variance Extracted (AVE)
was all above 0.5 (see Figure 1).
Table 2. Result of Reliability and Validity Test
Variable
Ccategory
F. loading
C.R
AVE
Gender (X1)
Male (code: 1); Female (code: 2)
1.000
Perceived moral intensity (X2)
Social consensus (X2.1):
X2.1.1
X2.1.2
X2.1.3
0.787
0.768
0.842
0.873
0.390

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Temporal immediacy (X2.2):
X2.2.1
X2.2.2
The Magnitude of Consequences (X2.3):
X2.3.1
X2.3.2
X2.3.3
X2.3.4
X2.3.5
X2.3.6
0.568
0.533
0.719
0.729
0.308
0.328
0.343
0.630
Perceived moral culture (X3)
Tone at the top (X3.1):
X3.1.1
X3.1.2
Pressure (X3.2)
X3.2.1
X3.2.2
X3.2.3
0.234
0.333
0.725
0.801
0.853
0.719
0.412
Ethical judgment (Y1)
Y1.1
Y1.2
0.952
0.846
1.003
0.809
Moral intention (Y2)
Y2.1
Y2.2
0.960
0.939
0.920
0.902
Moral identity (M)
M1.1
M1.2
M1.3
0.946
0.930
0.912
0.934
0.864
Source: Data Processed 2023
The next test is discriminant validity to ensure that the reflective construct has the strongest
relationship with the indicator itself; the HTMT ratio is expected to obtain a value below 0.90
(Henseler et al., 2015). Table 3 shows all Heterotrait-monotrait ratio (HTMT) values below 0.85;
therefore, discriminant validity can be accepted.
Table 3. Discriminant Validity Analysis
Variables
X1
X2
X3
Y1
Y2
M.Y1
M.X3
M.X2
M.X1
X1
0.148
X2
0.622
0.225
X3
0.680
0.198
0.445
Y1
0.154
0.034
0.143
0.178
Y2
0.610
0.274
0.550
0.622
0.136
M.Y1
0.147
0.095
0.077
0.150
0.520
0.159
M.X3
0.3
0.011
0.106
0.260
0.117
0.135
0.213
M.X2
0.229
0.004
0.123
0.101
0.092
0.026
0.044
0.396
M.X1
0.521
0.226
0.282
0.305
0.101
0.263
0.116
0.247
0.318
Source: Data Processed 2023

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Source: Data Processed 2023
Figure 2. Measurement Model: Loading, Construct Reliability, and Convergent Validity
The results of collinearity testing and model evaluation can be seen in Table 4. The Variance
Inflation Factor (VIF) in the proposed model is below 5. This indicates no collinearity. Table 4 below
shows that the dependent variable in the ethical judgment (Y1) and moral intention (Y2) models has
an R-value of 0.093 and 0.453, respectively. Chin (1998) recommends R2 values for endogenous
latent variables based on: 0.67 (substantial), 0.33 (moderate), 0.19 (weak). The results of this study
are seen from the value of R2; the ethical judgment model is weak and moderate for the moral
intention model.
Table 4. Colinierity test and evaluation model
Variables
Y1
Y2
M
2.394
2.559
X1
1.107
1.124
X2
1.494
1.499
X3
1.553
1.617
Y1
1.462
M.Y1
1.414
M.X3
1.321
1.457
M.X2
1.273
1.278
M.X1
1.485
1.499
R-square
0.093
0.453
R-square adjusted
0.053
0.421
Source: Data Processed 2023
Hypotheses Testing. Hypothesis testing using SEM-PLS with 5000 bootstrap subsamples has
been carried out. The summary of the results in Table 5 shows that eight hypotheses are accepted

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and eight are rejected. The accepted hypothesis has a significance level of 5% (p-value below 0.05)
or 10% (p-value below 0.1).
Table 5. Results of hypotheses testing
Relationship Between Variables
Hypotheses
Path Coefficient
P-value
Accept/Reject
Gender (X1) - Ethical judgment (Y1)
H1a
0.115
0.274
Rejected
Gender (X1) - Moral intention (Y2)
H1b
0.285
0.049*
Accepted
Perceived moral intensity (X2) - Ethical
judgement (Y1)
H2a
-0.061
0.280
Rejected
Perceived moral intensity (X2) - Moral
intention (Y2)
H2b
0.220
0.004*
Accepted
Perceived moral culture (X3) - Ethical
judgement (Y1)
H3a
0.195
0.031*
Accepted
Perceived moral culture (X3) - Moral
intention (Y2)
H3b
0.251
0.001*
Accepted
Moral identity (M) - Ethical judgment
(Y1)
H4a
-0.351
0.001*
Accepted
Moral identity (M) - Moral intention
(Y2)
H4b
0.313
0.000*
Accepted
Gender (X1).Moral identity (M) -
Ethical judgment (Y1)
H5a
0.143
0.211
Rejected
Gender (X1).Moral identity (M) - Moral
intention (Y2)
H5b
-0.036
0.418
Rejected
Perceived moral intensity (X2).Moral
identity (M) - Ethical judgment (Y1)
H5c
0.047
0.274
Rejected
Perceived moral intensity (X2).Moral
identity (M) - Moral intention (Y2)
H5d
-0.109
0.067**
Accepted
Perceived moral culture (X3).Moral
identity (M) - Ethical judgment (Y1)
H5e
0.142
0.051**
Accepted
Perceived moral culture (X3).Moral
identity (M) - Moral intention (Y2)
H5f
-0.020
0.392
Rejected
Ethical judgement (Y1) - Moral
intention (Y2)
H6a
-0.016
0.407
Rejected
Ethical judgment (Y1).Moral identity
(M) - Moral intention (Y2)
H6b
0.059
0.195
Rejected
Based on the test results regarding the level of construct reliability on variables, this study
shows that only social consensus and the magnitude of consequences are considered reliable in
measuring perceived moral intensity. Social consensus asks the extent to which respondents agree
that audit cases are acceptable (although not liked) by superiors, other auditors, and the audit
profession in general. The magnitude of consequences is only reliable in constructs that ask whether
the actions chosen by the auditor in a case can be detrimental to the KAP and the stakeholders where
the auditor works. In addition, this study proves that temporal immediacy is not reliably measured
by two constructs that asking about the auditor's actions will impact short-term and long-term
immediacy. For the variable perceived moral culture, measured using two indicators, namely tone
at the top and pressure, only questions from pressure are considered reliable. The tone at the top
needs to be revised, which asked about respondents' perceptions of how an organization's top
management should make firm policies and set an example in applying professional ethics. These
results prove that accounting students at the undergraduate or diploma level need to adequately

39
understand the conditions of action that can influence ethical considerations and moral intentions,
especially regarding short/long-term consequences and the importance of tone at the top.
Next is a discussion of the results of hypothesis testing. The findings of this study indicate that
as many as eight hypotheses are accepted, and eight hypotheses are rejected. Gender only influences
moral intention but not ethical judgment. Like the test results, perceived moral intensity affects only
moral intention but not ethical judgment. However, perceived moral culture and identity can
influence ethical judgment and moral intention. This study also failed to prove that there is an effect
of ethical judgment on moral intention.
The study results align with Suliani & Marsono (2010), which show that gender does not affect
ethical judgment in accounting students. Ethical judgment is the ability to recognize the morally
right thing to do (Apriyana & Puspita, 2018). Differences between men and women do not affect
recognizing what is morally right or wrong for accounting students. However, this study supports
the findings of Pierce & Sweeney (2010), which show that gender affects moral intention. The
intention to do something moral from male or female students was different. Research by Pierce &
Sweeney (2010) has proven that women have higher ethical intentions than men.
The findings related to perceived moral intensity experience differences and similarities in
research findings with Yusnaini & Meirawati (2023). The results of this study indicate that perceived
moral intensity only affects moral intention, not ethical judgment. Research by Yusnaini &
Meirawati (2023) found that perceived moral intensity has an influence on both variables (ethical
judgment and moral intention). The significant effect of perceived moral intensity on moral intention
can be explained, namely, what students perceive about morality can influence their moral
intentions in behaving. Pramesti & Wulanditya (2021) revealed that students with high morality
tend to behave ethically. Whereas there is no significant effect of perceived moral intensity on the
ethical judgment in this study, it can be caused by the measurement of perceived moral intensity,
measured using social consequence and the magnitude of consequences, all of which only consider
loss consequences. This weakens the perceived moral intensity component and does not affect
decision-making (Singhapakdi et al., 1996).
Next is the discussion of research results, which reveal that perceived moral culture has a
significant influence on ethical judgment and moral intention, as well as the moral identity, which
has a significant influence on these two variables. Students perceive a moral culture shown by
success as an accountant in overriding ethics; ethical attitudes are only an image, and business
pressures that are more prioritized than the quality of work can influence how they consider the
ethical level of an accountant's behavior and moral intentions. These findings support the research
results of Pierce & Sweeney (2010), which state that perceived moral culture is a determining factor
in ethical decision-making. Then, regarding the moral identity of this study, which chose to use the
moral identity centrality approach, it significantly affected ethical judgment and moral intention.
This variable shows how strongly students can internalize the moral traits described in the cases.
This study's results align with the arguments of Neesham & Gu (2015), which state that moral
identity can influence student ethical judgment, so paying attention to business ethics education is
essential. This research also proved that moral identity can affect the intention to act morally
(Aquino et al., 2009).
Moral identity is unable to moderate the effect of gender on ethical judgment or moral
intention. The results of this study also show that the relationship between ethical judgment and
moral intention cannot be moderated by moral identity. However, moral identity can moderate the
relationship between perceived moral intensity and moral intention and the relationship between
perceived moral culture and ethical judgment. As explained by Nawfel & Xiang (2021), the more

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accountants perceive a situation with high moral intensity, the more they understand their moral
identity, which impacts their intention to take moral action. However, research has yet to be done
regarding the relationship between perceived moral culture and ethical judgment, which is
strengthened by moral identity. This research proves that the higher the students' perception of
moral culture and supported by a strong moral identity, the more it influences them to act ethically.
Some of the findings of this research imply that higher education institutions, through
educators, need to pay attention to lecture material that can provide learning experiences on how to
understand cases of ethical dilemmas and make ethically correct decisions. Learning about ethical
attitudes or behavior should not only be included in ethics courses but also presented in courses
related to accountant competence. Thus, students graduating from the accounting study program
have been equipped with hard and soft skills that can make them accountants with adequate
competence and ethics.
CONCLUSION
In answering the research objective, namely to find out the factors that influence ethical
judgment and moral intention of accounting students (such as gender, perceived moral intensity,
and perceived moral culture) with moral identity as a moderator, this study conducted a survey
using a case study approach. The conclusions obtained include: First, ethical judgment is only
influenced by perceived moral culture and moral identity, while moral intention can be influenced
by all variables (gender, perceived moral intensity, perceived moral culture, and moral identity).
Second, moral identity can moderate the effect of perceived moral intensity on ethical judgment and
perceived moral culture on moral intention.
This research has limitations. The results of this study failed to prove that all indicators were
declared reliable in measuring the perceived moral intensity and perceived moral culture, especially
in the temporal immediacy and tone at the top constructs. This measurement is caused by the ability
of accounting students who need help understanding the consequences of ethical dilemmas in
companies. Therefore, this study suggests further research using experimental methods that can
describe situations closer to the truth so that research subjects are more internalized. In addition, the
use of accounting students as respondents should be selected from the master of accounting students
and accounting profession programs (C.A.).
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