Antecedents and consequences of staff related fraud in the Ghanaian banking industry
| Pages | 188-201 |
| DOI | https://doi.org/10.1108/JFC-03-2019-0034 |
| Published date | 03 February 2020 |
| Date | 03 February 2020 |
| Author | Alexander Ekow Asmah,Williams Abayaawien Atuilik,Dominic Ofori |
| Subject Matter | Financial risk/company failure,Accounting & Finance |
Antecedents and consequences of
staffrelated fraud in the Ghanaian
banking industry
Alexander Ekow Asmah,Williams Abayaawien Atuilik and
Dominic Ofori
Department of Business Administration, Heritage Christian University College,
Accra, Ghana
Abstract
Purpose –The purpose of this paperis to investigatethe antecedents and consequences of employee fraud,
focusingon thebanking industry in Ghana.
Design/methodology/approach –A major bank was selected for the case study analysis. The
researchers employed qualitative data analysis for the study. Content analysis of investigation reports and
interviewsof employees from different functional areas were used as the main data collection tools.
Findings –This study found that loans contracted by bank employees with huge repayment
amounts put financial pressure on them to commit fraud. The study also found that inadequate
controls in some areas of the bank can fuel the commission of fraud. In addition, aggrieved employees
have highly chances of committing fraud. Huge punitive consequences were noted to exist for the
employee who perpetrates the fraud and shareholders are also affected by the fraudulent behaviour of
employees.
Research limitations/implications –Findings shown in the studyconfirm the hypotheses of the fraud
triangle theory on the causes of fraud in spite of its criticisms. The findingsare also consistent with extant
studies on the antecedentsand consequences of fraud. The use of one bank for the case study analysis as well
as the three-year analysis period imposes a limitation on the study. Future studies can explore fraud using
other different theoreticallenses. Gathering data from more than one bank and for a longer period of analysis
may provide more accurateresults.
Practical implications –This study provides some recommendations for fraud prevention in the
banking industry in Ghana. The major one is the need for the central bank to collaborate with financial
institutions to set up an effective credit worthiness system that will aid the monitoring of activities of the
banks. Banks should also ensure that systems of controlsare reviewed regularly to identify and deal with
fraud.
Originality/value –This study is original, as it focuseson an industry that is highly susceptible to fraud
because of issuesof confidentiality with data and with the scanty literature on fraud.
Keywords Banking, Fraud, Staff related
Paper type Research paper
Despite intense efforts to stamp out corruption, misappropriation of assets, and fraudulent
activities, it appears that fraud in its various forms is a problem that is increasing in frequency
and severity (The Certified Accountant, 2009).
1. Introduction
The fraudulent scandals that hit international corporations such as (Tyco, Merck and Co.
and WorldCom) have heightened both the awareness of professionals and investors to be
more careful and meticulous in making investment decisions. Without debate, fraud is a
JFC
27,1
188
Journalof Financial Crime
Vol.27 No. 1, 2020
pp. 188-201
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2019-0034
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