Tuesday, April 6, 2010
Jeffrey R. Cohen (Boston College - Department of Accounting), Yuan Ding [China Europe International Business School (CEIBS)], Cédric Lesage (HEC School of Management, Paris), and Hervé Stolowy (HEC Paris) have posted Managers' Behavior in Corporate Fraud: The Fraud Triangle and the Theory of Planned Behavior on SSRN. Here is the abstract:
Based on evidence from press articles covering 39 corporate fraud cases that went public during the period 1998-2005, the objective of this paper is to examine the role of managers’ behavior in the commitment of the fraud. This study integrates the fraud triangle (FT) and the theory of planned behavior (TPB) to gain a better understanding of fraud cases. The results of the analysis suggest that personality traits appear to be a major fraud risk factor. Auditors should evaluate the ethics of management through the components of the theory of planned behavior: the assessment of attitude, subjective norms, perceived behavioral control and moral obligation. Therefore, it is potentially important that the professional standards that are related to fraud detection strengthen the emphasis on managers’ behavior that may be associated with unethical behavior.