Critiques and further directions for fraud studies. Reconstructing misconceptions about developing fraud theories
| DOI | https://doi.org/10.1108/JFC-07-2019-0100 |
| Pages | 323-335 |
| Published date | 28 January 2020 |
| Date | 28 January 2020 |
| Author | Ach Maulidi |
| Subject Matter | Financial crime,Accounting & Finance,Financial risk/company failure |
Critiques and further directions
for fraud studies
Reconstructing misconceptions about
developing fraud theories
Ach Maulidi
Business School, University of Edinburgh, Edinburgh, UK and
Bina Nusantara University, Jakarta, Indonesia
Abstract
Purpose –The purpose of this study is to reconstruct the use of dispositionvariables as determinants of
fraudulent behaviours. It is hoped, it stimulates our critical understanding of psychological aetiology on
individual’sintention to perpetrate partial fraud or to co-offend.
Design/methodology/approach –This study was developed as a reflection of empirical work
conductedin Indonesia public sectors.
Findings –By suggesting the important process of individual’s cognitive reasoning, this studyidentifies
that there is an overlooked processmade by prior studies in terms of personalitytraits as a strong predictive
power for individual’s intention to commitfraudulent behaviours or white-collar crimes. This study argues
that they should not be independently predictiveof fraud behaviours. This study acknowledges that in the
prediction of social behaviours, whether fraudulent behaviours or not, there are no absolute answers to or
analyses of it. However, it is instructive to consider socialcognitive theory in elucidating the psychological
pathways associated with fraudulent behaviours. This is because it can bridge an appropriate lens in
positioning personalised behaviours as a predictor of perpetrating fraudulentbehaviours. Then, this study
does not haveany serious concerns about how many antecedentsinfluence behaviours of intention to perform
wrongdoings. However, the functioning of individual cognitive reasoning should not be ignored. Both
theoretical and managerial implications from this study are discussed to suggest alternative theories on
causes of fraudulentbehaviours.
Practical implications –This study usessocial cognitive theory as a basis of analysis. Througha simple
analysis, a differentperspective of treating the antecedents of fraudhas been proposed, so that it can be used
to developmore effective intervention that can deter fraudulentbehaviours within an organisation.
Originality/value –This study theoretically explorespsychological mechanisms or pathways related to
the functioning of individual’s reasoning. Then, this study proposes the critiques,in which it is intended to
stimulate another research on deepening and broadening a theory of fraud. In short,this study importantly
also offers recommendations and opportunities for future research and organisations to develop effective
preventionthat can deter fraudulent behaviours.
Keywords Personality traits, Social cognitive theory, Fraudulent behaviours,
Psychological aetiology
Paper type Literature review
Introduction
The aim of this paper is to reconstruct the use of disposition variables as determinants of
fraudulent behaviours.A misconception of predicting individuals’intention to defraud from
The authors are grateful to Prof Jake Ansell and Prof Tom Archibald of Business School, University
of Edinburgh, Edinburgh, UK, for their comments and discussions on previous versions of this work.
Critiques and
further
directions for
fraud studies
323
Journalof Financial Crime
Vol.27 No. 2, 2020
pp. 323-335
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-07-2019-0100
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
To continue reading
Request your trial