DETERMINATION OF ETHICAL BEHAVIOR OF ACCOUNTANCY AND FINANCE UNDERGRADUATE OF RAJARATA UNIVERSITY OF SRI LANKA

Abstract

Ethical behavior is increasingly critical today due to rising corporate scandals, financial fraud, and unethical practices that undermine public trust and economic stability. For accountancy and finance undergraduates, understanding and practicing ethical behavior is crucial, as they are responsible for ensuring the integrity and transparency of financial information. This study focuses on identifying the factors that affect the ethical behavior of accounting and finance undergraduates at Rajarata University of Sri Lanka. This research aims to determine the significant impact of academic achievement, ethical climate, ethical awareness and education, and ethical sensitivity on ethical behavior. Data were collected from 269 undergraduate students using a structured online questionnaire. Data were collected from 50% of the Accountancy and Finance undergraduates each year. The findings indicate that academic achievement, ethical climate, ethical awareness and education, and ethical sensitivity positively affect the ethical behavior of accountancy and finance undergraduates at Rajarata University of Sri Lanka. The study revealed an adjusted R-squared value of 0.599, suggesting that the factors of academic achievement, ethical climate, ethical awareness and education, and ethical sensitivity explain 59.9% of the ethical behavior of undergraduates. The conclusion highlights the significant impact of academic achievement, ethical climate, ethical awareness, and ethical sensitivity on the ethical behavior of accountancy and finance undergraduates at Rajarata University of Sri Lanka. The study offers suggestions to support the career development of future professionals, outlines relevant recommendations for further study, and acknowledges the study’s limitations.