Whistleblowing system, Machiavellian personality, fraud intention. An experimental study

DOIhttps://doi.org/10.1108/JFC-01-2019-0003
Pages202-216
Published date15 January 2020
Date15 January 2020
AuthorHanrin Damas Triantoro,Intiyas Utami,Corina Joseph
Subject MatterFinancial risk/company failure,Financial crime
Whistleblowing system,
Machiavellian personality,
fraud intention
An experimental study
Hanrin Damas Triantoro
Department of Accounting, Satya Wacana Christian University,
Salatiga, Indonesia
Intiyas Utami
Department of Accounting, Faculty of Economics and Business,
Satya Wacana Christian University, Salatiga, Indonesia, and
Corina Joseph
Faculty of Accountancy, Universiti Teknologi MARA, Kota Samarahan, Malaysia
Abstract
Purpose The objective of this study is: 1) to examine the effect of whistleblowing system and fraud
intention, 2) the impact of Machiavellianismpersonality and fraud intention, 3) the interaction effect between
whistleblowingsystem, Machiavellianism personalityand fraud intention.
Design/methodology/approach This study carried out a 2 2 between-subjects true experimental
research design, using the Web-based tool. The subjects were 75 accounting undergraduate students from
seven universitiesin Indonesia who were enrolled for auditing courses.
Findings This study shows that fraud intentionincreases with the absence of a whistleblowing system.
This researchalso shows that higher Machiavellianism increases individualfraud intention.
Research limitations/implications The poor internet connection contributes to obstruction in
accessing the experimental website. Few participants were required to repeat the completion of the
experimentalmodule.
Practical implications This study contributes to developing the whistleblowing system to mitigate
fraud intentionin organizations considering the personality traitof the individual.
Social implications This study suggeststhe importance of a better understanding of fraud mechanisms
to enhance the awarenessof the whistleblowing system.
Originality/value This studyuses the whistleblowing systemas a proxy for an opportunity in thefraud
triangle concept. Thereis limited empirical research conducted on examiningthe whistleblowing system to
fraudintention and the interactionof Machiavellian personalityand whistleblowingsystem to fraud intention.
Keywords Fraud intention, Machiavellian personality, Whistleblowing system
Paper type Research paper
1. Introduction
Organizationsrun various risks in achieving their goalsincluding fraud risk. Fraudhas been
a global threat. A studyconducted by the Association of Certif‌iedFraud Examiners (ACFE)
Global shows that fraud adversely affected organizationsrevenues. Further, the Report to
the Nations(2018) issued by ACFE indicates thatasset misappropriation is themost common
fraud. Fraudstersconsist of not only upper managersbut also lower managers.
JFC
27,1
202
Journalof Financial Crime
Vol.27 No. 1, 2020
pp. 202-216
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-01-2019-0003
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

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT