Search results

The purpose of this paper is to examine differences in managers' and employees' attitudes about fraud across different cultures, provide some theories as to why these differences exist, give some recent examples of cultural differences in ethical perceptions from practice, make recommendations as to how companies can address this issue and make improvements to their anti‐fraud programs based on the country and culture in which they operate, and suggest some opportunities for future research.

The paper takes the form of a literature review.

A great deal of future research is needed to examine the effects of culture on the critical elements of managements' antifraud programs and controls that may be most effective in combating corruption, including the whistleblower hotline, internal audit, surprise audits, management review of internal controls, rewards for whistleblowers, and mandatory job rotation.

This is one of the first papers reviewing the literature on cross‐cultural fraud and identifying opportunities for future research.

The purpose of this research is to determine the likelihood of financial statement manipulations in companies throughout a variety of emerging market countries and compare this potential wirh that of firms within the USA.

The authors utilize the Fraud Score Model, as set forth by Dechow et al., to determine the likelihood of financial statement manipulations. By adjusting their model to work in an international setting, the authors are able to study nine industries across 23 countries, including the USA.

The results vary from industry to industry, with some countries performing extremely well in one industry, only to prove remarkably risky in the next.

The findings may be used by a variety of market participants, especially investors, to determine the risk levels of potential foreign investments. Therefore, this research can help lead to a more overall efficient placement of global capital.

Because cultures operate in very different ways, different activities are corrupting in different parts of the world. Taking the view that corruption is an activity that tends to undermine a cultural system, this paper aims to examine this issue.

The paper analyzes real‐life situations in Japan, Taiwan, India, China, North America, sub‐Saharan Africa, the Middle East, and Korea to distinguish actions that structurally undermine a cultural system from those that are merely inefficient or are actually supportive.

Cultures have fundamentally different behavioral norms due to their different conceptions of human nature. They can be broadly classified as rule‐based and relationship‐based, distinguished by the fact that behavior is regulated primarily by respect for rules in the former and authority figures in the latter. Corrupting behavior differs around the world partly because of different norms, and partly because cultural systems break down in different ways. Activities such as nepotism or cronyism that are corrupting in the rule‐based cultures of the West may be functional in relationship‐based cultures. Behavior that is normal in the West, such as bringing lawsuits or adhering strictly to a contract, may be corrupting elsewhere. Practices such as bribery that are often corrupting across cultures are nonetheless corrupting for very different reasons.

The paper provides culturally sensitive guidelines not only for avoiding corruption but also for understanding the mechanisms that make a culture work.

This paper seeks to examine the extent to which national cultural characteristics impact the propensity of firms based in the country to engage in bribery to gain advantages when conducting business overseas.

A set of statistical analyses – bivariate correlations and regression – was performed on data for five cultural variables and one economic variable for 30 countries to ascertain the relationship between these variables on a country's Bribe Payers Index, a measure of bribe giving.

The results indicate that firms from countries low on power distance or long‐term orientation, or high on individualism, are less likely to engage in bribe giving. However, when the level of economic development in the home country as measured by per capita income is included, the impact of cultural factors is muted considerably. Firms from high‐income countries are less likely to give bribes.

Richer countries are likely to have certain practices that create a business ethos where bribing is the exception, not the rule, in conducting business. The study is based on a one‐time sample of just 30 countries for which bribe‐giving data are available. The data culture is limited to the countries studied by Hofstede.

Bribery is less a cultural phenomenon; instead, it is bred in poverty and illustrative of business behavior occurring in a highly regulated and inward‐looking economy. As a country prospers and the domestic operating environment becomes more hygienic, it will have a salutary effect on the international behavior of the firms based in that country.

The study mediates the debate between cultural and economic determinism and provides empirical evidence that bribe‐giving is largely an expression of economic imperatives and not cultural predisposition.

This paper sets out to discuss white‐collar crime and fraud in China and to draw implications for Western businesses wishing to enter the Chinese market.

The paper provides examples of recent frauds committed in China and also provides a brief review of the literature. It traces the development of China's economy, describing China's modern‐day economy, and also looks at cultural issues and differences between Western and Chinese attitudes.

Western businesses planning to enter the Chinese market need to do their due diligence before committing resources. What works in Western society may not work in another culture, like China's. However, gaining an understanding of the culture and general way of life will go a long way towards laying the groundwork for success.

Additional focus should be placed on examining how cultural differences affect judgments and behaviors.

From a practical standpoint, the paper provides insights into possible areas of disagreement between employees from different cultures that can result from their divergent opinions about individuals' responsibility for fraudulent acts.

The literature states that rationalization strategies contribute to a spread of corruption in organizations. They are supposed to serve not only as post hoc justifications but also as ex ante determinants of corrupt behavior. This empirical study aims at challenging this theoretical assumption.

The authors gained empirical data in a business simulation game where participants had the opportunity to act corruptly. The sample included both university and high school students.

The results show that post hoc rationalizations primarily highlight the “positive” intention behind corrupt action. As relationships with important person‐based determinants of corruption are lacking, it is questionable whether rationalization strategies possess potential as ex ante determinants of corrupt behavior.

The design of the study only assesses rationalization strategies post hoc. Therefore it does not allow for examining causal effects, only the investigation of relationships. Future research should aim at addressing this issue, including both ex ante and post hoc assessment of rationalization strategies.

The paper is a first attempt to examine empirically the function of rationalization strategies in the context of corruption in organizations.

This paper aims to highlight the corruption mode of village funds in Indonesia and provide recommendations to reduce such crime.

This paper uses Diamond Fraud theory to explain why the mode of corruption continues, using secondary data from journal articles, research reports and websites.

Corruption mode is carried out through fund misuse, cover-up, fictional reports, fictitious activities and projects and budget markup.

Prevention and detection of fraud can be more effective when considering pressure, opportunities, rationalization and individual abilities.

The novelty of this paper is to provide a more comprehensive view of the factors that can lead to fraud or corruption using the Fraud Diamond Theory.