Determinants of Employee Fraud Intention in Malaysia Workforce

 




 

Kuah, Je Ping (2024) Determinants of Employee Fraud Intention in Malaysia Workforce. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Employee fraud remains a pervasive issue in Malaysian workplaces, necessitating a deeper understanding of its underlying determinants and complexities. This research delves into the intricate dynamics of fraudulent behaviour, specifically examining the influence of financial pressure, organizational commitment, and moral leadership on employee fraud intentions. Drawing upon established theoretical frameworks such as the Fraud Triangle, Fraud Diamond, Fraud Pentagon and Theory of Planned Behaviour, the study seeks to unravel the multifaceted nature of fraudulent activities within organizational settings. The study aims to uncover the mediating role of capability and the moderating role of rationalization in the relationship between financial pressure and fraudulent behaviour. The research employs a quantitative approach, utilizing surveys as the primary data collection method. Statistical analyses, including bivariate regression, mediated regression, and moderated regression, are conducted to explore the relationships between key variables and employee fraud intention. Findings reveal a significant positive association between financial pressure and employee fraud intention, underscoring the influence of economic strain on unethical conduct. Furthermore, capability emerges as a crucial mediator, highlighting the importance of individual skills and competencies in navigating pressures conducive to fraud. Rationalization is identified as a significant moderator, indicating its role in influencing the relationship between financial pressure and fraud intention. While organizational commitment and moral leadership show limited direct associations with fraud intention, their nuanced influences are discussed within the broader context of ethical organizational cultures. Theoretical implications emphasize the need for holistic approaches in understanding fraud behaviour, integrating diverse perspectives from criminology, psychology, and organizational behaviour. Managerial implications suggest strategies for addressing financial stress, promoting competency and accountability, and fostering ethical leadership to mitigate fraudulent behaviour effectively. However, the study acknowledges certain limitations, including sample size constraints and the focus primarily on the private sector. Recommendations for future research include expanding the sample size, considering demographic factors, and exploring additional variables such as arrogance in relation to fraud intentions. Overall, this study contributes valuable insights for policymakers, businesses, and stakeholders in combating fraud and promoting ethical standards in Malaysian workplaces

Item Type: Thesis / Dissertation (Masters)
Subjects: Social Sciences > Management > Corporate governance
Social Sciences > Commerce > Personnel management. Employment management
Faculties: Faculty of Accountancy, Finance & Business > Master of Corporate Governance
Depositing User: Library Staff
Date Deposited: 30 Aug 2024 02:37
Last Modified: 30 Aug 2024 04:10
URI: https://eprints.tarc.edu.my/id/eprint/29932