The Impact of Ethical Leadership, Perceived Effectiveness of Corporate Governance and Work Pressures on Employee's Fraud Intentions, Mediates by Perceived Managerial Trustwhothiness in Malaysia Perpestive

Soh, Yee Leng (2024) The Impact of Ethical Leadership, Perceived Effectiveness of Corporate Governance and Work Pressures on Employee's Fraud Intentions, Mediates by Perceived Managerial Trustwhothiness in Malaysia Perpestive. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

This study examines the mediating effect of perceived management trustworthiness on ethical leadership, perceived effectiveness of corporate governance and work pressures and how these affect employees’ fraud intentions. To achieve the objectives of this research, a quantitative approach and a cross-sectional method have been employed using 202 employees who are currently working in various sectors in Malaysia. The data obtained are then analysed via Statistical Package for Social Sciences (SPSS) and Partial Least Square-Structural Equation modelling (PLS-SEM, namely Smart PLS). The research findings reveal that ethical leadership, perceived effectiveness of corporate governance and work pressures create a climate of perceived managerial trustworthiness among employees, which in turn mediates their respective relationships with employee’s fraud intentions. This study contributes to the literature by examining the determinants of employee’s fraud intentions (i.e. ethical leadership, perceived effectiveness of corporate governance and work pressures) in Malaysia, which has merely focus before. Furthermore, this research incorporates the role of perceived managerial trustworthiness as a mediator to inspect the underlying reasons that cause employees to be involved in fraud intentions. From a practical perspective, this research raises awareness of organisations to review their ethical leadership style adopted, perceived of corporate governance policies and work pressures rendered to employees to foster perceived of managerial trustworthiness and stimulate employee fraud intentions