The purpose of this paper is to test the association between national culture dimensions and exposure to fraud with a view to drawing implications for understanding fraud risk.
The study is based on a sample of 66 countries. Regression analysis is conducted using Hofstede’s national culture dimensions as independent variables and fraud risk as a dependent variable. Transparency International’s corruption index was used as a proxy for fraud risk.
Results suggest high fraud risk exposure in countries with high power distance and those having limited long-term orientations.
The study informs deeper understanding of fraud risk through analysis of fraud risk in a culturally relative sense.
This is the first study (known to the author) to draw the implications of national culture for understanding fraud risk.
CitationDownload as .RIS
Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited