Investigating the Factors Affecting the Occurrence of Law Breaking in E-business Entrepreneurs

Document Type : Original Article

Authors

1 Department of Business, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran.

2 Department of Entrepreneurship Development, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran.

Abstract

Contrary to the standard approach of classical economics, many studies show that all people somewhat engage in wrongdoing and break the law in order to gain profit as long as their self-image is not affected. The current study, which is a branch of this new psychological view on breaking the law, using two tests, identifies and examines the factors affecting the possibility of breaking the law among people. In the first test, the relationship between the amount of legal restrictions and the amount of participation in price manipulation was investigated on an international sample including 347 cryptocurrency traders. In the second test, the relationship between the probability of breaking the law in one field and the probability of breaking the law in another field was investigated on a sample of 189 entrepreneurs. According to the results of the current study, breaking the law in one field can make people more indifferent to all laws. In addition, the increase in legal restrictions can make people more indifferent to laws, which itself reduces the amount of attention to the law. Among other factors affecting the probability of breaking the law, one can refer to the person's understanding of the extent of breaking the law among others. The more someone estimates the amount of law-breaking by their peers in similar circumstances, the more they will break the law. This study provides policymakers and planners with practical suggestions.

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