TY - JOUR
T1 - Determinants of asset misappropriation at the workplace
T2 - the moderating role of perceived strength of internal controls
AU - Koomson, Theodora Aba Abekah
AU - Owusu, Godfred Matthew Yaw
AU - Bekoe, Rita Amoah
AU - Oquaye, Maureen
N1 - Publisher Copyright:
© 2020, Emerald Publishing Limited.
PY - 2020/12/7
Y1 - 2020/12/7
N2 - Purpose: This paper aims to investigate the prevalence of asset misappropriation at the workplace and examines the dominant factors that influence individuals to misappropriate assets at the workplace. Relying on the most recent theory on fraud (the stimulus/pressure, capability, opportunity, rationalization and ego (S.C.O.R.E. model) as the theoretical basis, the study examines the effect of pressure, rationalization, capability, opportunity/strength of internal control system and ego on asset misappropriation at the workplace while controlling for the effect of ethical values. Design/methodology/approach: A total of 883 valid responses from individuals working in various organizations in Ghana were collected by means of a self-administered questionnaire. The hypothesized relationships of the study were tested by means of a structural model analysis using the partial least square based structural equation modelling technique. Findings: Results from the structural model analysis demonstrate that individuals misappropriate assets at their workplace due to pressures they face, their ability to rationalize their actions as not wrong, their capabilities and their egos. The results, however, indicate that the extent to which an individual will misappropriate asset depends, to a large extent, on the person’s perception of the strength of internal control mechanisms at the workplace. The findings of the study make significant contributions to the fraud discourse. Originality/value: Theoretically, the study is among the first to provide empirical support for the applicability of the S.C.O.R.E. model in the fraud literature. Again, this study extends knowledge on occupational fraud literature by examining an area that has received the least research attention: asset misappropriation. The study also highlights the important role of internal controls in reducing the occurrence of asset misappropriation at the workplace.
AB - Purpose: This paper aims to investigate the prevalence of asset misappropriation at the workplace and examines the dominant factors that influence individuals to misappropriate assets at the workplace. Relying on the most recent theory on fraud (the stimulus/pressure, capability, opportunity, rationalization and ego (S.C.O.R.E. model) as the theoretical basis, the study examines the effect of pressure, rationalization, capability, opportunity/strength of internal control system and ego on asset misappropriation at the workplace while controlling for the effect of ethical values. Design/methodology/approach: A total of 883 valid responses from individuals working in various organizations in Ghana were collected by means of a self-administered questionnaire. The hypothesized relationships of the study were tested by means of a structural model analysis using the partial least square based structural equation modelling technique. Findings: Results from the structural model analysis demonstrate that individuals misappropriate assets at their workplace due to pressures they face, their ability to rationalize their actions as not wrong, their capabilities and their egos. The results, however, indicate that the extent to which an individual will misappropriate asset depends, to a large extent, on the person’s perception of the strength of internal control mechanisms at the workplace. The findings of the study make significant contributions to the fraud discourse. Originality/value: Theoretically, the study is among the first to provide empirical support for the applicability of the S.C.O.R.E. model in the fraud literature. Again, this study extends knowledge on occupational fraud literature by examining an area that has received the least research attention: asset misappropriation. The study also highlights the important role of internal controls in reducing the occurrence of asset misappropriation at the workplace.
KW - Asset misappropriation
KW - Ethical values
KW - Fraud triangle
KW - Internal control system
KW - Structural equation modelling
UR - http://www.scopus.com/inward/record.url?scp=85086169097&partnerID=8YFLogxK
U2 - 10.1108/JFC-04-2020-0067
DO - 10.1108/JFC-04-2020-0067
M3 - Article
AN - SCOPUS:85086169097
SN - 1359-0790
VL - 27
SP - 1191
EP - 1211
JO - Journal of Financial Crime
JF - Journal of Financial Crime
IS - 4
ER -