Recent research (Choi and Nisbett 1998, 2000; Choi et al. 1999; Ji et al. 2000; Nisbett et al. 2001) has repeatedly shown that compared to Westerners, East Asians pay greater attention to situational factors and endorse a more holistic theory of causality. Based on this robust finding, the present study examined the extent to which Americans and Chinese differ in their causal judgment about, and their reaction to observed fraudulent behavior. The results show that compared to Americans, the Chinese were more sensitive to situational factors. They were less likely to attribute fraudulent behavior to individual dispositions, and less likely to agree to punitive measures that are directed at the target person. Implications for both practice and research are discussed.

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