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The purpose of this study is to examine whether executive compensation structure is a predictor of a value judgment shift facilitating fraud. The Raval (2018) disposition-based fraud model theorizes that in a fraud, a judgment shift occurs that results in an intentional action. Judgment shifts are influenced by intertemporal rewards, an executive compensation structure comprising salary (immediate reward) and delayed compensation in performance-based incentives.

Using an archival data set consisting of frauds identified through Securities and Exchange Commission Accounting and Auditing Enforcement Releases, the compensation structure of executives involved in frauds is compared against the compensation structure of executives in a peer control group.

There was a significant difference in the intertemporal rewards of the compensation structures between the two groups, indicating that compensation structure presents intertemporal choices leading to a judgment shift that influences the deliberate action of fraud.

This study represents the first empirical test of the disposition-based fraud model using intertemporal rewards leading to judgment shift.

Executive compensation structure should reduce intertemporal rewards for executives reducing judgment shifts that can result in risk of fraud.

This study addresses how executive compensation structure can result in fraud.

This paper aims to analyze the attributes of Ponzi schemes (“Ponzis”) to determine whether they are a unique class of financial fraud.

The authors apply the disposition-based fraud model to classify and differentiate the attributes of Ponzis. This classification exercise helps comprehend the distinct drivers of Ponzis.

Fraud risk factors of Ponzis are different from those involved in other financial frauds. Four propositions about risk and risk mitigation measures are developed.

The research approach used is conceptual, not empirical. However, the insights from this exercise should inform how different Ponzis are from other financial frauds and why they should be treated as a separate class for prevention and enforcement. In turn, this may trigger an interest in empirical research focused on the unique risks of Ponzis.

Knowledge of risk factors unique to Ponzis will permit a consideration of customized risk mitigation measures to prevent or detect Ponzis. Enforcement actions can also become more effective because of a distinct risk-based classification of Ponzis.

The prevention of damage from Ponzis hinges upon how well prospective victims are educated to become aware of signs of Ponzis. This should lead to the more effective protection of investors from victimization from Ponzi schemes.

The implicit understanding that all financial frauds are alike and that the risk-factors involved are substantially the same across all classes of fraud is challenged. This revelation opens opportunities to add value through focused research on Ponzis as a distinct class of fraud.

This paper aims to investigate how the literature has been addressing the relationships between corporate fraud and executive behavior and corporate fraud and information technology (IT) controls.

A systematic literature review was performed following the planning phases proposed by Levy and Ellis (2006), illuminated by the research onion, developed by Saunders et al. (2007).

The main findings of the studies analyzed refer basically to models to assess the risk of fraud. These risks originate from the market, from the organization itself or from individuals and also from their relationship networks. Subsequently, the main risks identified by the authors were classified according to their origin, the main theories approached and the “solutions” for the risks presented by the authors as the product of their work.

It should be noted that this study is not free of limitations, of which two stand out: the full body of articles on the subject was certainly not evaluated. Although the search has been systematic and judicious both by the combination of keywords for the searches, as well as by the use of the main databases and also by the rigor in the description of the procedures and the analysis of the articles in the light of Research Onion was based on the authors’ knowledge that may have been limited in some respect.

As a practical implication, there is the relationship of red flags and their classification by origin, as they can be very useful for planning the work of internal and external auditors.

It is considered that this work can be a starting point for scholars who are interested in the corporate fraud phenomenon, given that the data was collected and organized systematically.

The analysis of the articles in relation to Research Onion shed light on the main philosophical and methodological characteristics of the studies. Also, regarding the relationships between corporate fraud and IT controls, existing scientific research appears to be limited. Searches for the terms information technology and information systems were extended, as well as search strings tested with the terms data governance and IT governance without results. This fact demonstrates that there may be (as far as the results have reached) a vast area of research on corporate fraud in the field of systems knowledge and information technology.

Although corporations exert considerable efforts to uphold ethical standards in their business operations, fraud instances persist as an enduring and formidable challenge within organisations, defying their utmost efforts. The presence of fraud poses a substantial and recurring threat to corporations, leading to significant financial losses on an annual basis. This emphasises the crucial need for a comprehensive understanding of the factors contributing to fraudulent activities and the intricate nature of fraud risk factors inherent in business operations. Therefore, this paper aims to enhance the efficacy of fraud detection and prevention measures through critical analysis and refinement of established fraud theories, drawing upon the existing literature on this subject matter.

This paper offers a comprehensive qualitative analysis of the existing literature, thoroughly reviewing prominent models that aim to elucidate the underlying motivations behind fraudulent behaviour. Moreover, drawing upon the existing theoretical foundation, this study conceptualises a model that enhances the understanding of the crucial factors contributing to fraudulent behaviour.

The study presents new theoretical insights concerning the role of personal integrity in fraudulent decision-making, presenting refined interventions that enhance comprehension of the underlying drivers of fraud occurrences and strategies for prevention. Furthermore, the study reveals a comprehensive three-part approach to improving organisational health through strengthening compliance mechanisms and cultivating an ethical-values-based culture.

The study introduces a novel conceptual framework, the personal ethic-based fraud motivation model, which offers a deeper understanding of the factors and conditions influencing individuals’ propensity to engage in fraudulent activities. Furthermore, this study presents a three Cs strategy that effectively delineates the influential forces that drive individuals to surmount fraud risks.

This paper aims to provide new understanding of fraudulent behaviour by offering different theoretical discussion on the fraud causation.

The authors interviewed 15 executive managers in one of Indonesia local governments, by using semi-structured questions.

The authors explored the dynamics of both self- and other-directed factors in the spread of fraudulent behaviours, by focusing on the public-sector fraud landscape in local government. As a basis of analysis, the authors applied the theory of planned behaviours. In this study, “a concept of fraud triangle” substantially provides little help in elucidating the causation of fraudulent behaviours in local government. The theoretical and managerial implications are discussed.

This study offers new direction on broadening and deepening fraud literature and theories about the root causes of fraudulent behaviours.

This study aims to investigate the relationship between chief executive officer (CEO) narcissism and internal control weaknesses in the Iranian listed companies.

The study’s statistical population consists of 1,309 firm-year observations from 2012 to 2018. Multivariate regression and the least squares regression are used in this study to examine the hypothesis.

The hypothesis confirms a positive and significant relationship between the CEOs’ narcissism and the internal control weaknesses (ICWs). In other words, managers with narcissistic personality traits prioritize their position, interests and goals. Therefore, there is more possibility of information distortion and denying the existing internal controls, leading to an increase in misreporting.

In this paper, two variables, including the manager’s signature and the managers’ cash compensation index, are used to assess the CEO’s narcissism, leading to more accurate results. This is also the first study examining CEO narcissism and internal control weaknesses, especially in the emerging market.

The purpose of this paper is to develop a nuanced interpretative frame that can help global managers with recommendations to avoid misapplied power with group and organizational situations.

Embodied metaphor is applied in analysis of the theory-praxis nexus to reconceive the bases, processes and resources associated with group and organizational power. Identified are patterns of relations in organizational bases and circuits of power, as expressed through literal and symbolic aspects of human hands and fingers. The paper does not revolve around gesticulations; instead focusing upon a novel, meta-cultural development of touchlines of the human hand, revealing conceptual relationships with the implementation of influence.

A differentiated understanding of the touchline powers of technology, information, self-awareness, relation to others and access to money can respectively improve decisions and actions. Insights are provided in the areas of controlling people to achieve objectives, demeaning others, managing change and resistance for personal gain, negotiating contracts, advancing personal interests and coordinating reward or punishment.

Choosing one metaphor may contribute to the exclusion of other perspectives, however, the embodied nature of the hand and touchlines tends to cross cultures and may assist further research to address the embedded nature of abuses of organizational power.

The contribution is in the theory-praxis nexus to assist global managers in addressing the risk of potential misuse of power and influence in organizations and to respond to calls for ancient indigenous epistemological systems to assume a role in contemporary management studies.

This research draws on drive reduction theory and mental accounting theory to understand how the prospect of reselling used items can influence consumer feelings of consumption guilt and impact their willingness to purchase new products.

We conducted two studies with between-subjects designs to explore this relationship. In Study 1, we examined the correlation between consumers' perceived guilt and their willingness to buy a new product, considering their awareness of the product’s resale potential. Study 2 delved into the aspect of reselling a similar old product already owned by the consumer.

The findings suggest three key insights. First, consumers' awareness of resale potential significantly affects their guilt perception and purchasing decisions. Second, the resale reference price (RRP) can decrease guilt perception but increase the intention to buy a new product. Lastly, when consumers are aware of the resale value of a previously owned product that is similar to the desired new product, the effect of the RRP on their purchasing intent is mediated by consumer guilt.

This research fills a theoretical gap by empirically exploring the emotional motivations behind consumer resale behavior. It presents a novel perspective on how resale activities can shape feelings of guilt and impact purchasing decisions. This offers important implications for understanding the dynamics of consumer behavior in the second-hand market.