The Role of Power in Financial Statement Fraud Schemes

Chad Albrecht, Daniel Holland, Ricardo Malagueño, Simon Dolan, Shay Tzafrir

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)803-813
Number of pages11
JournalJournal of Business Ethics
Volume131
Issue number4
DOIs
StatePublished - 1 Nov 2015

Bibliographical note

Publisher Copyright:
© 2014, Springer Science+Business Media Dordrecht.

Keywords

  • Collusion
  • Financial statement fraud
  • Organizational corruption
  • Power and influence
  • Recruitment

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting (all)
  • Arts and Humanities (miscellaneous)
  • Economics and Econometrics
  • Law

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