Examining the predictors of fraud in state-owned enterprises: an application of the fraud triangle theory

Abstract

Purpose This paper aims to investigate the views of employees on the motives behind frequently reported fraudulent activities at the workplace. Using the fraud triangle theory (FTT) as the theoretical lens, the study examines the effect of pressure, opportunity and rationalization on fraudulent acts by employees at the workplace. Design/methodology/approach The study follows a correlational quantitative approach using questionnaires as the main data collection tool. A total of 243 valid responses from employees working in different state-owned enterprises in Ghana were used in the empirical analysis. The hypothesized relationships of the study were tested using the partial least square-structural equation modelling technique. Findings The results from the structural analysis showed that pressure, rationalization and opportunity are important in explaining why employees engage in fraudulent activities at the workplace. Originality/value The findings do not only provide empirical support for the applicability of the FTT in the Ghanaian context but most importantly offer some useful insights into the fraud discourse from the public sector workers’ perspective.

Pengaruh Financial Distress Terhadap Kecurangan Laporan Keuangan

“…Dalam teorinya ACFE menyatakan ada tiga koponen utama fraud yaitu korupsi (corruption), penyalahgunaan aset (asset misappropriation), dan kecurangan laporan keuangan (financial statement fraud) yang mana ketiga komponen tersebut digabung dalam teori Fraud Tree. Berbagai skema dan taktik yang dimiliki pelaku kecurangan menjadi dasar terciptanya teori Fraud Tree (Owusu et al, 2022).…”

The Effect of Hexagon Fraud in Detecting Fraud Financial Statements (Empirical Study on Financial Sector Companies Listed on the Indonesia Stock Exchange 2017-2021)

“…Financial statement fraud is described as financial statement fraud which generally refers to a deliberate alteration of a company's financial statements to portray a different company image and often with the intent to mislead users of financial information (Owusu et.al., 2021). According to the American Institute of Certified Public Accountants (2002) in Jannah et.al.…”

“…Financial statement fraud is described as financial statement fraud which generally refers to a deliberate alteration of a company's financial statements to portray a different company image and often with the intent to mislead users of financial information (Owusu et.al., 2021). Based on the results of the 2019 Indonesia Fraud Survey, financial statement fraud is the third most detrimental fraud after corruption and asset misappropriation.…”

The Influence of Machiavellianism, Love of Money and Internal Control on the Tendency of Asset Misuse in Government-Owned Enterprises XYZ in Semarang

“…However, the existing research tends to ignore traits in a person such as Machiavellianism and love of money. Some previous researchers such as Bakri et al (2017); Said et al (2018); and Owusu et al (2021) investigated fraud acts by implementing the fraud triangle theory, this study resolved the attribution theory to investigate fraud. There are two factors in attribution theory that determine individual behavior, namely internal forces and external forces.…”