Search results

1 – 10 of over 4000
Article
Publication date: 26 August 2014

Mary E. Schramm, Jennifer L. Herbst and Angela Mattie

The purpose of the study is to review The False Claims Act (FCA) settlements and challenges facing the industry to suggest the motivation behind firms’ alleged fraudulent…

Abstract

Purpose

The purpose of the study is to review The False Claims Act (FCA) settlements and challenges facing the industry to suggest the motivation behind firms’ alleged fraudulent activity. FCA has been applied against pharmaceutical companies by the US Government to combat marketing fraud including kickbacks, improper pricing and off-label promotion. The interests of the US Government and medical professionals are also considered. Changes to the law governing pharmaceutical marketing practices are recommended.

Design/methodology/approach

Cases settled under the FCA between 2005 and 2012 were identified by accessing the US Department of Health and Human Services (DHHS) Corporate Integrity Agreements Web site and annual reports and the quitamhelp.com Web site. Case details were collected from US Department of Justice press releases, DHHS annual reports, and case documents in the Public Access to Court Electronic Records database.

Findings

Of the settled cases in the final sample, improper pricing practices were evident in 33 per cent of the cases; off-label promotion in 52 per cent; and both in 15 per cent of the cases. Forty-eight per cent of the alleged fraudulent marketing activity occurred within the brands’ first year and 68 per cent within the first two years on the market. Reported settlements ranged from US$4 million to US$4.3 billion.

Originality/value

This research simultaneously considers business issues facing the pharmaceutical industry and alleged fraudulent marketing activity to recommend changes to the law governing drug promotion. Changes have the potential to improve the balance between the respective interests of industry, medicine and government and to improve compliance and patient care in the future.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 8 no. 3
Type: Research Article
ISSN: 1750-6123

Keywords

Article
Publication date: 10 October 2016

Merlin Stone and Paul Laughlin

This paper aims to explore the impact of the internet and related information and communications technology developments on how financial services (FS) are distributed and how…

1307

Abstract

Purpose

This paper aims to explore the impact of the internet and related information and communications technology developments on how financial services (FS) are distributed and how customers are managed, in particular, not only how companies can differentiate between “good” and “bad” customers and manage them appropriately but also how customers can be “bad” and escape the consequences. It also explores how changes in information asymmetry between suppliers and customers affects who gains or loses from the relationship between them.

Design/methodology/approach

The data for the article are from the authors’ consulting and conference chairing experience. The article is in the form of a reflection on this, rather than a hypothesis-based research article.

Findings

One of its findings is that those responsible for controlling damage done to companies by fraudulent or negative value customers (typically those managing underwriting or risk) and those responsible for recruiting, retaining and developing customers (typically marketing, sales and customer service) do not work closely enough together, and this can lead to not only damage to shareholder value but also damage to the customer experience.

Research limitations/implications

The paper identifies the need for more research covering the processes, data, analysis, systems and strategies required to manage both good and bad customers and the practical problems of implementation.

Practical implications

The main practical implication is that in designing products and the customer service experience, FS marketers need to take into account much more systematically the “dark side” of customer activity.

Originality/value

This paper is one of the first to explore its issues in detail.

Details

Journal of Research in Interactive Marketing, vol. 10 no. 4
Type: Research Article
ISSN: 2040-7122

Keywords

Article
Publication date: 3 July 2017

Norman Mugarura

The purpose of this paper is to explore dynamic issues relating to Ponzi and other fraudulent investment schemes to demonstrate how scammers convince victims of investment…

1230

Abstract

Purpose

The purpose of this paper is to explore dynamic issues relating to Ponzi and other fraudulent investment schemes to demonstrate how scammers convince victims of investment opportunities that turn out to be nothing but fraudulent. Specifically, it explores the nature of Ponzi, Pyramid, Advance fees scams and the mechanisms used to defraud unsuspecting victims of their money. The risks associated with Ponzi schemes can be gleaned in the fraud case of Bernie Madoff (1998) who had been running a Ponzi scheme in the USA for 20 years and reaping investors of their returns without ever discovering it until the business collapsed. The other notorious investment scams include “the Nigerian letter frauds” which combine the threat of impersonation fraud with a variation of an advance fee scheme in which a letter is mailed to offer recipients the “opportunity” to share in a percentage of millions of dollars that the author – a self-proclaimed government official – is trying to transfer out of his country. This article assesses the possibility of using anti-money laundering regulatory tools such as a “risk based approach” and “Know Your Customer” to protect victims of fraudulent investment schemes.

Design/methodology/approach

The paper was written by analysis of primary and secondary data and by utilising newspaper reports on different types of fraudulent investment schemes and the context in which they normally happen in practice. It has also utilized case studies and relevant examples to demonstrate different typologies of fraudulent schemes and the possibility of using anti-money laundering regulatory tools to regulate them.

Findings

The findings suggest that many people who fall victims of fraudulent investment schemes such as Ponzi and advance fee fraud are not gullible but lack knowledge of their sophistication and how they operate to defraud unsuspecting victims of their savings.

Research limitations/implications

The paper was largely a library-based research, and there were no interviews carried out to corroborate some of the data used in writing it. This minimises inherent bias in the use of secondary data sources to undertake a study.

Practical implications

The practical implication of the paper is to highlight the inherent risks in Ponzi and other fictitious investment schemes that are often cleverly conjured to exploit ignorance of the public and defraud them of their savings. It demonstrates that while financial institutions can use their regulatory tools such as KYC to safeguard financial markets from criminal exploitation, people should be vigilant to avoid falling victims of criminal exploitation and lose their savings.

Social implications

With globalisation, the market is awash with different types of investment opportunities, but people need to keep in mind that it has also created opportunities for criminal exploitation. Some opportunities that are being offered such as advance fee and other schemes are cleverly devised to exploit ignorance of the public. Therefore, this paper highlights the pitfalls which potential investors need to bear in mind when deciding on where to invest and how to invest their money.

Originality/value

Research on Ponzi schemes, advance fee fraud and misuse of letters of credit do not seem to have received proportionate scholarly attention as other forms of financial crimes. This paper, therefore, addresses a need in the market on many issues it relates.

Details

Journal of Money Laundering Control, vol. 20 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 10 August 2010

James Davis

The purpose of this paper is to identify the main practitioners, goods, customers and locations of secondhand marketing activities in late medieval England. It questions how…

Abstract

Purpose

The purpose of this paper is to identify the main practitioners, goods, customers and locations of secondhand marketing activities in late medieval England. It questions how important was the economic role played by such markets and what was the interaction with more formal market structures?

Design/methodology/approach

A broad range of evidence was examined, covering the period from 1200 to 1500: regulations, court rolls, wills, manorial accounts, literature, and even archaeology. Such material often provided mere scraps of information about marginal marketing activity and it was important to recognise the severe limitations of the evidence. Nevertheless, a wide survey of the available sources can give us an insight into medieval attitudes towards such trade, as well as reminding us that much marketing activity occurred beyond the reach of the surviving documentation.

Findings

Late medieval England had numerous outlets for secondhand items, from sellers of used clothes and furs who wandered the marketplaces to craftsmen who recycled and mended old materials. Secondhand marketing was an important part of the medieval makeshift economy, serving not only the needs of the lower sectors of society but also those aspiring to a higher status. However, it is unlikely that such trade generated much profit and the traders were often viewed as marginal, suspicious and even fraudulent.

Originality/value

There is a distinct lack of research into the extent of and significance of medieval secondhand marketing, which existed in the shadowy margins of formal markets and is thus poorly represented in the primary sources. A broad‐based approach to the evidence can highlight a variety of important issues, which impact upon the understanding of the medieval English economy.

Details

Journal of Historical Research in Marketing, vol. 2 no. 3
Type: Research Article
ISSN: 1755-750X

Keywords

Article
Publication date: 1 October 2002

Raymond A.K. Cox and Thomas R. Weirich

Explores the impact that recent fraudulent financial reporting has had on the capital markets. Attempts to examine the stock market reaction, both to return and risk, to…

5183

Abstract

Explores the impact that recent fraudulent financial reporting has had on the capital markets. Attempts to examine the stock market reaction, both to return and risk, to fraudulent financial reporting that has occurred in major corporations during the decade 1990‐1999. Finds that capital market impact is significant in dollar terms with strong negative announcement effects the day before and on the day of a news event. Concludes that auditor and regulator vigilance needs to be strongly maintained in monitoring firms’ financial reporting.

Details

Managerial Auditing Journal, vol. 17 no. 7
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 4 September 2023

Luping Sun, Xiaona Zheng, Luluo Peng and Yujie Cai

In marketing, most research on intention–behavior consistency (IBC) is dedicated to improving the predictive ability of stated intentions for future behaviors, with relatively…

Abstract

Purpose

In marketing, most research on intention–behavior consistency (IBC) is dedicated to improving the predictive ability of stated intentions for future behaviors, with relatively less exploration into the precursors of IBC, especially those linked to regular durable goods void of ethical consumption characteristics. This study aims to focus on the antecedents of IBC for such products, specifically examining category-level and product-level IBC in light of consumer knowledge.

Design/methodology/approach

The authors conducted a two-round survey to collect 3,560 Chinese consumers' vehicle purchase intentions and behaviors. The authors have also leveraged a large vehicle database (containing detailed vehicle attribute information) to measure consumer product knowledge (i.e. product judgment accuracy). A trivariate probit model was proposed to account for the potential selection bias arising from sample attrition while examining the effects of consumer knowledge on category- and product-level intention-behavior consistency.

Findings

Findings reveal that 47% of the participants displayed category-level IBC, and within this group, a further 39% exhibited product-level IBC. Notably, product knowledge, manifested as accurate product judgment, correlates negatively with category-level IBC but positively with product-level IBC. Intriguingly, the negative association between inaccurate judgment and product-level IBC is less pronounced for consumers overestimating the target product than for those underestimating it. Furthermore, consumers with direct experience are less prone to show category-level IBC, but are more inclined to display product-level IBC.

Practical implications

Vehicle marketers should prioritize consumers who show interest in their products but possess inaccurate knowledge, to retain whom companies can nurture their product knowledge. As for consumers with accurate knowledge, companies should try to expedite their purchase. Vehicle marketers also need to devise suitable advertising strategies to prevent consumers from undervaluing their products. For those overestimating competitors' products, companies can provide information to correct their overestimation and draw attention to possible confirmation biases. Vehicle marketers should encourage potential buyers who have shown interest in their product to participate in test-drive events, exhibitions, and other direct experience opportunities. Yet, for consumers still in the “whether-to-buy” decision-making phase, companies should not rush them into a test drive.

Social implications

In the policy-making realm, governmental administrators can implement extensive consumer education programs, with a focus on the importance of product knowledge. This may involve providing consumers with accurate information and buying guides through various channels, which can help consumers make informed purchase decisions. Moreover, to foster healthy competition among vehicle companies, governmental administrators can establish regulations that require vehicle companies and other relevant industries to provide accurate and transparent product information, including performance, safety, and environmental aspects. Finally, in order to protect consumer rights, governmental administrators can also strengthen regulations to ensure fair treatment and safeguards for consumers throughout the purchasing process. This includes cracking down on false advertising and fraudulent practices, maintaining market order, and enhancing consumer confidence and purchase consistency.

Originality/value

This study is among the first attempts to examine the relationship between consumer knowledge and intention-behavior consistency, especially for regular durable products void of ethical consumption characteristics. Responding to the call of previous literature (e.g. Morwitz, 1997), the authors distinguish between and examine two forms of intention-behavior consistency simultaneously (using a sample selection model) and obtain more reliable conclusions. Moreover, the study's large-scale two-round survey had obtained individual-level purchase behavioral outcomes, which allowed the authors to measure each consumer's IBC at both category and product levels. More importantly, the authors show the opposite effects of consumer knowledge on the two forms of intention-behavior consistency.

Details

Marketing Intelligence & Planning, vol. 41 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 22 January 2024

Dinesh Kumar and Nidhi Suthar

Artificial intelligence (AI) has sparked interest in various areas, including marketing. However, this exhilaration is being tempered by growing concerns about the moral and legal…

Abstract

Purpose

Artificial intelligence (AI) has sparked interest in various areas, including marketing. However, this exhilaration is being tempered by growing concerns about the moral and legal implications of using AI in marketing. Although previous research has revealed various ethical and legal issues, such as algorithmic discrimination and data privacy, there are no definitive answers. This paper aims to fill this gap by investigating AI’s ethical and legal concerns in marketing and suggesting feasible solutions.

Design/methodology/approach

The paper synthesises information from academic articles, industry reports, case studies and legal documents through a thematic literature review. A qualitative analysis approach categorises and interprets ethical and legal challenges and proposes potential solutions.

Findings

The findings of this paper raise concerns about ethical and legal challenges related to AI in the marketing area. Ethical concerns related to discrimination, bias, manipulation, job displacement, absence of social interaction, cybersecurity, unintended consequences, environmental impact, privacy and legal issues such as consumer security, responsibility, liability, brand protection, competition law, agreements, data protection, consumer protection and intellectual property rights are discussed in the paper, and their potential solutions are discussed.

Research limitations/implications

Notwithstanding the interesting insights gathered from this investigation of the ethical and legal consequences of AI in marketing, it is important to recognise the limits of this research. Initially, the focus of this study is confined to a review of the most important ethical and legal issues pertaining to AI in marketing. Additional possible repercussions, such as those associated with intellectual property, contracts and licencing, should be investigated more deeply in future studies. Despite the fact that this study gives various answers and best practices for tackling the stated ethical and legal concerns, the viability and efficacy of these solutions may differ depending on the context and industry. Thus, more research and case studies are required to evaluate the applicability and efficacy of these solutions in other circumstances. This research is mostly based on a literature review and may not represent the experiences or opinions of all stakeholders engaged in AI-powered marketing. Further study might involve interviews or surveys with marketing professionals, customers and other key stakeholders to offer a full knowledge of the practical difficulties and solutions. Because of the rapid speed of technical progress, AI’s ethical and regulatory ramifications in marketing are continually increasing. Consequently, this work should be a springboard for more research and continuing conversations on this subject.

Practical implications

This study’s findings have several practical implications for marketing professionals. Emphasising openness and explainability: Marketing professionals should prioritise transparency in their use of AI, ensuring that customers are fully informed about data collection and utilisation for targeted advertising. By promoting openness and explainability, marketers can foster customer trust and avoid the negative consequences of a lack of transparency. Establishing ethical guidelines: Marketing professionals need to develop ethical rules for the creation and implementation of AI-powered marketing strategies. Adhering to ethical principles ensures compliance with legal norms and aligns with the organisation’s values and ideals. Investing in bias detection tools and privacy-enhancing technology: To mitigate risks associated with AI in marketing, marketers should allocate resources to develop and implement bias detection tools and privacy-enhancing technology. These tools can identify and address biases in AI algorithms, safeguard consumer privacy and extract valuable insights from consumer data.

Social implications

This study’s social implications emphasise the need for a comprehensive approach to address the ethical and legal challenges of AI in marketing. This includes adopting a responsible innovation framework, promoting ethical leadership, using ethical decision-making frameworks and conducting multidisciplinary research. By incorporating these approaches, marketers can navigate the complexities of AI in marketing responsibly, foster an ethical organisational culture, make informed ethical decisions and develop effective solutions. Such practices promote public trust, ensure equitable distribution of benefits and risk, and mitigate potential negative social consequences associated with AI in marketing.

Originality/value

To the best of the authors’ knowledge, this paper is among the first to explore potential solutions comprehensively. This paper provides a nuanced understanding of the challenges by using a multidisciplinary framework and synthesising various sources. It contributes valuable insights for academia and industry.

Details

Journal of Information, Communication and Ethics in Society, vol. 22 no. 1
Type: Research Article
ISSN: 1477-996X

Keywords

Article
Publication date: 1 July 2014

Ade Thompson Ojo and Olusegun Felix Ayadi

The purpose of this paper is to investigate if the prevalence of corruption and other unwholesome financial practices in Nigeria contributed substantially to the stunted growth of…

Abstract

Purpose

The purpose of this paper is to investigate if the prevalence of corruption and other unwholesome financial practices in Nigeria contributed substantially to the stunted growth of the capital market in general, and the stock market in particular.

Design/methodology/approach

The paper employed Gregory–Hansen cointegration approach to test the long-run equilibrium relationship between the occurrence of predatory banking practices and stock market capitalization in Nigeria.

Findings

There exists a long-run equilibrium relationship between bank fraud and stock market capitalization but with a structural break in 2005.

Practical implications

There is an urgent need to overhaul and re-assess from time to time the existing systems of internal checks and controls in banks, as well as other financial institutions in Nigeria.

Originality/value

This paper is the first to empirically test the long-run equilibrium relationship between bank fraud and stock market capitalization in Nigeria.

Details

Journal of Financial Crime, vol. 21 no. 3
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 April 2019

Mehmet Eryigit

Availability of accurate and reliable information in financial markets helps investors make well-informed decisions on capital allocations which is beneficial for long-term…

Abstract

Purpose

Availability of accurate and reliable information in financial markets helps investors make well-informed decisions on capital allocations which is beneficial for long-term economic growth. In this regards, the role of auditing firms that inspect the financial statements of the publicly traded companies in sound operation of financial markets has been increasing. The Capital Market Board of Turkey (CMBT) has the task and responsibility of investigating fraudulent information disseminated by the firms whose stocks are traded in Borsa Istanbul. The investigations can lead to monetary penalties if fraud is proven and the results are published by CMBT in its weekly bulletin. The present study aims to examine the effect of announcements of financial irregularities of companies in CMBT Bulletin on the performance of the relevant company stock in the short term.

Design/methodology/approach

This study uses abnormal return, cumulative abnormal return and cumulative average abnormal return as metrics and parametric, as well as non-parametric tests to ascertain whether the announcements of financial irregularities in company operations have any statistically significant effect on the return of its stock.

Findings

The results indicate that publication of the financial penalty news by CMBT in its bulletin has almost no statistically significant influence on the performance of the relevant companies’ stock in Borsa Istanbul. The findings indicate that either the investors in this particular markets do not consider such news relevant to long-term success of the firm or the announcement does not provide any new information and penalties have been priced into the stock before the announcement in the bulletin.

Originality/value

In literature there is no more research about the effect of the announcements of administrative monetary penalties and crime complaints on the stock returns.

Details

Journal of Financial Crime, vol. 26 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 29 September 2021

Abbas Koolivand, Mahdi Salehi, Meysam Arabzadeh and Hassan Ghodrati

This paper aims to assess the relationship between a knowledge-based economy and fraudulent financial reporting.

Abstract

Purpose

This paper aims to assess the relationship between a knowledge-based economy and fraudulent financial reporting.

Design/methodology/approach

The study is descriptive-correlation based on published information from enlisted firms on the Tehran Stock Exchange during 2013–2019 with a sample of 178 firms (1,246 observations). The method used for hypothesis testing is linear regression using the panel data.

Findings

The results show that a knowledge-based economy is associated negatively and significantly with financial reporting. Moreover, robust testing has also examined the hypotheses (including fixed effects, OLS and t + 1) that confirmed the study’s preliminary results.

Originality/value

As the study was carried out in the emergent financial markets, like Iran, to figure out the relationship between knowledge-based economy and financial reporting, it can provide helpful information for the practitioners in this field.

Details

Journal of Facilities Management , vol. 21 no. 1
Type: Research Article
ISSN: 1472-5967

Keywords

1 – 10 of over 4000