Post by Sapphire Capital on Aug 11, 2008 20:32:43 GMT 4
The Role of Managers' Behavior in Corporate Fraud
Jeffrey R. Cohen
Boston College - Department of Accounting
Yuan Ding
China Europe International Business School (CEIBS)
Cédric Lesage
HEC School of Management, Paris
Hervé Stolowy
HEC School of Management, Paris
July, 15 2008
Abstract:
Based on anecdotal evidence from press articles covering 39 high profile alleged or acknowledged corporate fraud cases, the objective of this paper is to examine one dimension partially unexplored: the role of managers' behavior in the commitment of the fraud. A close analysis of professional auditing standards reveals that these standards do not sufficiently emphasize managers' personality traits and ethics as fraud risk factors. This study uses a case analysis approach and combines the fraud triangle and the theory of planned behavior in order 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. Therefore, it is potentially important to strengthen the emphasis on managers' behavior in the auditing standards that are related to fraud detection.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1160076_code199614.pdf?abstractid=1160076&mirid=3
Jeffrey R. Cohen
Boston College - Department of Accounting
Yuan Ding
China Europe International Business School (CEIBS)
Cédric Lesage
HEC School of Management, Paris
Hervé Stolowy
HEC School of Management, Paris
July, 15 2008
Abstract:
Based on anecdotal evidence from press articles covering 39 high profile alleged or acknowledged corporate fraud cases, the objective of this paper is to examine one dimension partially unexplored: the role of managers' behavior in the commitment of the fraud. A close analysis of professional auditing standards reveals that these standards do not sufficiently emphasize managers' personality traits and ethics as fraud risk factors. This study uses a case analysis approach and combines the fraud triangle and the theory of planned behavior in order 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. Therefore, it is potentially important to strengthen the emphasis on managers' behavior in the auditing standards that are related to fraud detection.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1160076_code199614.pdf?abstractid=1160076&mirid=3