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1 – 10 of 17Mohd Azril Rezza Mohd Razmin, Amri Mohamad and Maheran Zakaria
This study aims to investigate the factors that influence asset misappropriation fraud among police officers in the Internal Security and Public Order (Malay: Keselamatan Dalam…
Abstract
Purpose
This study aims to investigate the factors that influence asset misappropriation fraud among police officers in the Internal Security and Public Order (Malay: Keselamatan Dalam Negeri dan Ketenteraman Awam [KDNKA]) Department, Royal Malaysian Police (RMP).
Design/methodology/approach
Primary data were collected from a questionnaire-based survey and the data were analysed using descriptive analysis, correlation analysis and multiregression.
Findings
The element of pressure was found to have a negative relationship with asset misappropriation fraud. This result shows the uniqueness of the KDNKA Department in the RMP. The other three elements are found to have a significant positive relationship with asset misappropriation fraud.
Practical implications
This study’s findings can aid academicians in gaining a better understanding of the literature surrounding fraud diamond theory and aid the policymakers in recognizing the signs and possibilities of asset misappropriation fraud in public agencies.
Originality/value
To the best of the authors’ knowledge, this is the first study that uses the KDNKA Department which is the second largest department in RMP as a population in fraud study.
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Yulianti Yulianti, Mohammad Wahyudin Zarkasyi, Harry Suharman and Roebiandini Soemantri
This study aims to examine the effect of professional commitment, commitment to ethics, internal locus of control and emotional intelligence on the ability to detect fraud through…
Abstract
Purpose
This study aims to examine the effect of professional commitment, commitment to ethics, internal locus of control and emotional intelligence on the ability to detect fraud through reduced audit quality behaviors.
Design/methodology/approach
The analysis unit is the internal auditor in internal control unit at state Islamic religious higher education in Indonesia. Data processing used covariance-based structural equation modeling using Lisrel Software and the Sobel test to verify the direct and indirect effects.
Findings
This study found empirical evidence that professional commitment and emotional intelligence positively impact the ability to detect fraud. Commitment to ethics and emotional intelligence has a negative effect on reduced audit quality behaviors. Furthermore, this study also provides that commitment to ethics and emotional intelligence indirectly impacts on the ability to detect fraud through reduced audit quality behaviors.
Practical implications
The organization periodically monitors auditors’ behaviors, especially reduced audit quality behaviors, during the audit process and encourages regulators to formulate policies related to increasing the ability to detect fraud.
Originality/value
This study provides knowledge regarding the driving force of internal auditors to mitigate reduced audit quality behaviors and increase the ability to detect fraud.
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The purpose of this study is to determine the strategy adopted by small- and medium-scale enterprise (SME) owners in setting up internal control systems, examine the relationship…
Abstract
Purpose
The purpose of this study is to determine the strategy adopted by small- and medium-scale enterprise (SME) owners in setting up internal control systems, examine the relationship between the numbers of employees’ fraud and strategy adopted in setting up internal control and evaluate the difference between proactive and reactive strategies in employee’s fraud prevention among SMEs.
Design/methodology/approach
A survey research approach was adopted to determine whether proactive or reactive strategies were adopted by the SME owners. Specifically, a survey questionnaire was used to gather primary data from selected respondents in Lagos and Oyo States. Descriptive statistics, Spearman correlation and the Mann–Whitney test were used to analyse the primary data.
Findings
The study found that most of the SME owners used reactive internal control strategies in setting up their internal control systems after they suffered financial losses occasioned by employees’ fraud. Also, the study found a positive relationship between the number of employees’ fraud and reactive strategy. Finally, the study found a significant difference in the number of employees’ fraud occurrences between proactive and reactive internal control strategies in SMEs.
Research limitations/implications
The study provides further confirmation that where internal control is properly set up and strengthened, a lower number of employee frauds will occur. Thus, giving credence to the fraud theory. The study was, however, conducted in six selected local government areas in two states.
Practical implications
The study provides recommendations on the adoption of a proactive strategy for curbing employees’ fraud at the onset of business operations and not until devastating events of employees’ fraud become a reality.
Originality/value
The study is original, as it focuses on the strategy adopted by SME owners in setting up internal control systems, which is rare in fraud empirical studies, particularly for studies conducted in emerging markets like Nigeria. It provides the need for the sustainability of SMEs as engine of growth and employment through the adoption of appropriate strategies in setting up internal control systems.
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Olusola Joshua Olujobi and Oshobugie Suleiman Irumekhai
The purpose of this paper is to scrutinise the intricate relationship between the inadequate enforcement of anti-corruption laws and the application of good governance and the…
Abstract
Purpose
The purpose of this paper is to scrutinise the intricate relationship between the inadequate enforcement of anti-corruption laws and the application of good governance and the persisting prevalence of coups d'état and poverty in Africa.
Design/methodology/approach
This paper uses a doctrinal legal research approach, synthesising existing literature while extensively analysing primary and secondary legal sources. Its primary aim is to scrutinise the intricate relationship between the inadequate enforcement of anti-corruption laws and the application of good governance and the persisting prevalence of coups d'état and poverty in Africa. The choice of case study countries Burkina Faso, Chad, Gabon, Guinea, Mali, Niger and Sudan stems from their historical significance, regional diversity, data accessibility and potential insights into the interplay among anti-corruption enforcement, governance, poverty and coups d'état in Africa.
Findings
The enforcement of anti-corruption laws and the promotion of good governance are indispensable for democracy and economic stability; their suboptimal enforcement directly contributes to coups d'état and the worsening of poverty in African nations. It emphasises the imperative for African countries to consistently and proficiently enforce anti-corruption laws and adhere to principles of good governance, effectively and responsibly, to mitigate coups d'état and alleviate poverty in the region.
Originality/value
This study designs a model strategy for combating coups d'état and corruption in Africa as contribution to knowledge in the field of study.
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Godfred Matthew Yaw Owusu, Theodora Aba Abekah Koomson and George Nana Agyekum Donkor
This paper aims to review corporate fraud, as a concept, and the emerging research trends in corporate fraud research from 1957 to 2022 using bibliometric analysis techniques.
Abstract
Purpose
This paper aims to review corporate fraud, as a concept, and the emerging research trends in corporate fraud research from 1957 to 2022 using bibliometric analysis techniques.
Design/methodology/approach
A total of 7,750 publications from the Scopus database were first assessed using performance analysis to explore the descriptive nature of the bibliographic data, and subsequently, citation, co-citation, co-occurrence and bibliographic coupling analyses were conducted using the VOSviewer software.
Findings
The results indicate there has been increasing growth in fraud research over the years, especially since the global corporate scandals of 2008. Although fraud is a global issue, the results suggest that most extant studies originate from developed economies, with a high level of collaboration amongst scholars in these countries. In addition, the co-occurrence analysis indicates that research into corporate fraud has largely focused on its determinants and corruption. The determinants identified are further clustered in the paper as individual, organizational and national-level factors.
Practical implications
The findings should inform practitioners and policymakers of the state of knowledge on corporate fraud which could be useful in developing strategies and policies to mitigate its occurrence.
Social implications
The study points to the need for research collaborations among scholars in developing economies to increase investigations into the occurrences of fraud.
Originality/value
To the best of the authors’ knowledge, this is the first study to holistically assess the intellectual structure of corporate fraud studies from its inception and the trends over time.
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Daniela-Georgeta Beju, Maria-Lenuta Ciupac-Ulici and Vasile Paul Bresfelean
This paper aims to investigate the impact of political stability on corruption by drawing upon a sample encompassing both developed and developing European and Asian countries.
Abstract
Purpose
This paper aims to investigate the impact of political stability on corruption by drawing upon a sample encompassing both developed and developing European and Asian countries.
Design/methodology/approach
The dataset, sourced from the Refinitiv database, spans from July 2014 to May 2022. Panel data techniques, specifically pooled estimation and dynamic panel data [generalized method of moments (GMM)] are employed. The analysis encompasses both fixed and random effects models to capture country-specific cross-sectional effects. To validate our findings, we perform a robustness test by including in the investigation four control variables, namely poverty, type of governance, economic freedom and inflation. To test heterogeneity, the dataset is further divided into two distinct subsamples based on the countries’ locations.
Findings
Empirical findings substantiate that political stability (viewed as the risk of government destabilization) has a positive and significant impact on corruption in all analyzed samples of European and Asian countries, though some differences are observed in various subsamples. When we take into account the control variables, these analysis results are robust.
Research limitations/implications
This research provided a panel data analysis with GMM, while other empirical methodologies could also be used, like the difference-in-difference approach. However, our results should be validated by extending the time and the sample to a worldwide sample and using alternative measures of corruption and political stability. Moreover, our focus was on a linear and unidirectional relationship between the considered variables, but it would be interesting to test in our further research a non-linear and bidirectional correlation between them. Furthermore, we have introduced in the robustness test only four economic variables, but to consolidate our findings, we plan to include socioeconomic and demographic variables in future studies.
Practical implications
These outcomes imply that authorities should be aware of the necessity of implementing anti-corruption policies designed to establish effective agencies and enforcement structures for combating systemic corruption, to improve the political environment and the quality of institutions and to apply coherent economic strategies to accelerate economic growth because higher political stability and sustainable development determine a decrease in levels of corruption.
Social implications
At the microeconomic level, the survival of organizations may be in danger from new types of corruption and money laundering. Therefore, in order to prevent financial harm, the top businesses worldwide should respond to instances of corruption through strengthened supervisory procedures. This calls for the creation of a mechanism inside the code of conduct where correct reporting of suspected situations of corruption would have a prompt procedure to be notified of. To avoid corruption in operational procedures, national plans and policies should be developed by government officials, executives and legislators on a national level, as well as by senior management and the board of directors on an organizational level. This might lower organizations' extra corruption-related expenses, assure economic growth and improve global welfare.
Originality/value
A novel feature of our research resides in its broad examination of a sizable sample of European and Asian countries regarding the nexus between corruption and political stability. The paper also investigates a less explored topic in economic literature, namely the impact of political stability on corruption. Furthermore, the study depicts policy recommendations, outlining effective and reasonable measures aimed at improving the political landscape and combating corruption.
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Lum Çollaku, Arbana Sahiti Ramushi and Muhamet Aliu
This study aims to examine the relationship between selfishness, moral justification and intention to fraud among accounting certified professionals. It focuses on the role of…
Abstract
Purpose
This study aims to examine the relationship between selfishness, moral justification and intention to fraud among accounting certified professionals. It focuses on the role of moral justification in explaining the link between selfishness and intention to fraud.
Design/methodology/approach
Data were collected with the help of a structured questionnaire. The final sample includes 240 accounting certified professionals. To test the hypothesized model in this study, IBM AMOS ver26 was used to perform the structural equation modeling.
Findings
The results of this study show that selfishness has no direct impact on the intention to commit fraud. However, selfishness does have a positive impact on moral justification. Furthermore, the study found that moral justification mediates the relationship between selfishness and fraud intention.
Practical implications
This study provides important implications for accounting firms and other organizations and recommends that they implement the necessary practices to reduce the fraudulent intentions of certified accounting professionals while simultaneously reducing selfishness and moral justification.
Originality/value
This research is among the few studies in the accounting field that address the mediating role of moral justification in the relationship between selfishness and fraud intention among certified accounting professionals.
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This paper aims to develop a conceptual framework that jointly considers Environmental, Social and Governance (ESG) factors and organisational resilience (OR) components to…
Abstract
Purpose
This paper aims to develop a conceptual framework that jointly considers Environmental, Social and Governance (ESG) factors and organisational resilience (OR) components to ameliorate organisations' understanding of sustainability’s overall requirements and related decision-making processes.
Design/methodology/approach
This paper combines ESG and OR through a 3x3 conceptual matrix, where ESG factors are listed along the vertical axis and OR components along the horizontal axis. This results in nine quadrants, which have been read according to two arrangements: (1) static, looking at the specific characteristics of each single quadrant, and (2) dynamic, investigating the relationships between the different quadrants according to the system theory (ST) lens.
Findings
The integration between ESG and OR results in nine organisational typologies, each characterised by a specific focus: (1) green visioning, (2) eco ethos, (3) climate guard, (4) inclusive strategy, (5) empathy ethos, (6) community shield, (7) ethical blueprint, (8) integrity ethos and (9) compliance guard. These typologies and related focuses determine the different strategic options of organisations, the decision-making emphasis concerning ESG factors and OR components and the organisation’s behaviour concerning its internal and external environment. According to ST, the nine typologies interact with each other, emphasising the existence of interconnectedness, interdependence and cascading effects between ESG and OR.
Originality/value
The paper represents a unique attempt to interrelate ESG factors and OR components according to a ST lens, emphasising the dynamic nature of their interactions and organisations’ need for continuous adaptation and learning to make decisions that create sustainable long-term value.
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Marwa Elnahass, Xinrui Jia and Louise Crawford
This study aims to examine the mediating effects of corporate governance mechanisms like the board of directors on the association between disruptive technology adoption by audit…
Abstract
Purpose
This study aims to examine the mediating effects of corporate governance mechanisms like the board of directors on the association between disruptive technology adoption by audit clients and the risk of material misstatements, including inherent risk and control risk. In particular, the authors study the mediating effects of board characteristics such as board size, independence and gender diversity.
Design/methodology/approach
Based on a sample of 100 audit clients listed on the FTSE 100 from 2015 to 2021, this study uses structural equation modelling to test the research objectives.
Findings
The findings indicate a significant and negative association between disruptive technology adoption by audit clients and inherent risk. However, there is no significant evidence observed for control risk. The utilisation of disruptive technology by the audit client has a significant impact on the board characteristics, resulting in an increase in board size, greater independence and gender diversity. The authors also find strong evidence that board independence mediates the association between disruptive technology usage and both inherent risk and control risk. In addition, board size and gender exhibit distinct and differential mediating effects on the association and across the two types of risks.
Research limitations/implications
The study reveals that the significant role of using disruptive technology by audit clients in reducing the risk of material misstatements is closely associated with the board of directors, which makes audit clients place greater emphasis on the construction of effective corporate governance.
Practical implications
This study offers essential primary evidence that can assist policymakers and standard setters in formulating guidance and recommendations for board size, independence and gender quotas, ensuring the enhancement of effective governance and supporting the future of audit within the next generation of digital services.
Social implications
With respect to relevant stakeholders, it is imperative for audit clients to recognise that corporate governance represents a fundamental means of addressing the ramifications of applying disruptive technology, particularly as they pertain to inherent and control risks within the audit client.
Originality/value
This study contributes to the existing literature by investigating the joint impact of corporate governance and the utilisation of disruptive technology by audit clients on inherent risk and control risk, which has not been investigated by previous research.
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