Understanding fraud in Malaysian SMEs

Abdoulaye N’Guilla Sow (Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia)
Rohaida Basiruddin (Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia)
Siti Zaleha Abdul Rasid (Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia)
Maizaitulaidawati Md Husin (Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia)

Journal of Financial Crime

ISSN: 1359-0790

Publication date: 2 July 2018

Abstract

Purpose

The paper aims to provide an overview of fraud risk among Malaysian small- and medium-sized enterprises (SMEs). In particular, the authors investigate the understanding of SME owners and managers on fraud schemes and the usage of antifraud measures.

Design/methodology/approach

A sample of 126 Malaysian SMEs from different industries participated in this study.

Findings

The results suggest that Malaysian SMEs are exposed to a broad range of fraud schemes, yet few take actions to prevent these frauds.

Practical implications

The findings should be useful to academic researchers, entrepreneurs, regulators and others who are interested in understanding the fraud risk in small businesses.

Originality/value

This study extends and contributes to prior literature by linking the state of fraud and SMEs in developing countries.

Keywords

Citation

N’Guilla Sow, A., Basiruddin, R., Abdul Rasid, S.Z. and Husin, M.M. (2018), "Understanding fraud in Malaysian SMEs", Journal of Financial Crime, Vol. 25 No. 3, pp. 870-881. https://doi.org/10.1108/JFC-08-2017-0077

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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