Analyzing the impact of business ethics in rationalizing investment decisions using PLS-SEM

Abstract

This study addresses the impact of the relationship between the existence of ethical principles in the behavior of managers and rationalization of investment decisions, to achieve the desired goals, we conducted a field survey on a sample of active economic enterprises in the industrial zone of Bordj Bou Arreridj, where we used SPSS and Smart-PLS software to test the validity of the hypotheses, after ensuring the quality of the model.

The results of the study showed that business ethics have a statistically significant effect on rationalizing investment decisions, as we concluded that there is an indirect effect of the three dimensions of ethics, which are discipline, integrity and honesty, while equality had a non-statistically significant effect, thus it has no effect in rationalizing the investment decisions.