Do Personality Traits Shape Ethical Judgment? Experimental Evidence from Tax Consultants in an Emerging Economy

Abstract

Ethical judgment is critical in tax consulting because professionals must reconcile client interests with legal, professional, and public responsibilities. This study examines whether Machiavellianism and locus of control influence the ethical judgment of professional tax consultants in Indonesia. Using a quantitative experimental approach, the study employed a 2 × 2 factorial design involving 145 tax consultants who were members of the Indonesian Tax Consultants Association (IKPI). Participants evaluated a standardized tax-related ethical dilemma and completed validated measures of Machiavellianism and locus of control. The findings indicate that Machiavellianism negatively affects ethical judgment, suggesting that consultants with stronger Machiavellian tendencies are more likely to prioritize instrumental and self-interested considerations when evaluating ethically sensitive tax decisions. In contrast, an internal locus of control positively influences ethical judgment, indicating that consultants who perceive greater personal control over outcomes demonstrate stronger accountability and greater adherence to professional and ethical considerations. The findings highlight that ethical judgment in tax consulting is shaped not only by technical competence and regulatory knowledge but also by enduring psychological characteristics. This study contributes to behavioural accounting research by providing experimental evidence from professional tax consultants in an emerging economy and offers practical implications for strengthening behavioural ethics, professional development, and ethical decision-making in tax practice.