Integrating ethical values into fraud triangle theory in assessing employee fraud: Evidence from the Malaysian banking industry
Vol. 10, No 2, 2017
|
Jamaliah Said
Universiti Teknologi MARA,
|
Integrating ethical values into fraud triangle theory in assessing employee fraud: Evidence from the Malaysian banking industry
|
|
Mahmudul Alam
Universiti Utara Malaysia,
Masitah Ramli
Universiti Teknologi MARA, Marhamah Rafidi
Universiti Teknologi MARA,
|
Abstract. This study attempts to integrate ethical values into the fraud triangle theory in the context of Malaysian banking industry. Primary data were collected through the survey of 108 questionnaires administered to the employees of the top three largest banks in Malaysia. The findings revealed that ethical values were negatively related to employee fraud, and two elements of fraud triangle theory, namely, opportunity and rationalization, were positively related to employee fraud. This implies that high ethical value is crucial to mitigate employee fraud. To minimize employee fraud, the banking industry should reduce opportunities and employee negative rationalization through strong internal control. This study contributes to literature on the occurrences of employee fraud, which is not widely discussed, especially in the context of the banking industry in developing countries. |
|
Received: January, 2017 1st Revision: March, 2017 Accepted: May, 2017 |
|
|
DOI: 10.14254/2071-8330.2017/10-2/13
|
|
|
JEL Classification: G21, E59 |
Keywords: fraud triangle theory, banking sector, ethical value, Malaysia |
