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Said Jamaliah (Universiti Teknologi MARA, Shah Alam, Malaysia), Alam Mahmudul (Universiti Utara Malaysia, Sintok, Malaysia), Ramli Masitah (Universiti Teknologi MARA, Shah Alam, Malaysia), Rafidi Marhamah (Universiti Teknologi MARA, Shah Alam, Malaysia)
Integrating ethical values into fraud triangle theory in assessing employee fraud : evidence from the Malaysian banking industry
Journal of International Studies, 2017, vol. 10, nr 2, s. 170-184, tab., bibliogr. 86 poz.
Sektor bankowy, Wartości i normy etyczne, Nadużycia pracownicze
Banking sector, Value and ethical norms, Employee frauds
JEL Classification: G21, E59
This study attempts to integrate ethical values into the fraud triangle theory in the context of Malaysian banking industry. Primary data were collected through the survey of 108 questionnaires administered to the employees of the top three largest banks in Malaysia. The findings revealed that ethical values were negatively related to employee fraud, and two elements of fraud triangle theory, namely, opportunity and rationalization, were positively related to employee fraud. This implies that high ethical value is crucial to mitigate employee fraud. To minimize employee fraud, the banking industry should reduce opportunities and employee negative rationalization through strong internal control. This study contributes to literature on the occurrences of employee fraud, which is not widely discussed, especially in the context of the banking industry in developing countries. (original abstract)
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