Abstract
In this paper, we investigate a large-scale financial statement fraud to better understand the process by which individuals are recruited to participate in financial statement fraud schemes. The case reveals that perpetrators often use power to recruit others to participate in fraudulent acts. To illustrate how power is used, we propose a model, based upon the classical French and Raven taxonomy of power, that explains how one individual influences another individual to participate in financial statement fraud. We also provide propositions for future research.
Original language | English |
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Pages (from-to) | 803-813 |
Number of pages | 11 |
Journal | Journal of Business Ethics |
Volume | 131 |
Issue number | 4 |
Early online date | 7 Jan 2014 |
DOIs | |
Publication status | Published - Nov 2015 |
Keywords
- Financial statement fraud
- Organizational corruption
- Recruitment
- Collusion
- Power and influence