Examining fraud risk factors on asset misappropriation: evidence from the Iranian banking industry

Soheil Kazemian, Jamaliah Said, Elham Hady Nia and Hamidreza Vakilifard

Journal of Financial Crime, 2019, vol. 26, issue 2, 447-463

Abstract: Purpose - The paper aims at examining the influences of the elements of fraud diamond on the asset misappropriation within the banking industry of Iran. Primary data were collected through 191 survey questionnaires administered among employees of the top three banks in Iran, which own above 60 per cent of market shares in the banking industry of the country. Design/methodology/approach - Primary data were collected through 191 survey questionnaires administered among employees of the top three banks in Iran, which own above 60 per cent of market shares in the banking industry of the country. Findings - Results strongly supported that all four elements of fraud risk significantly influence bank employee asset misappropriation in Iran. To minimize employee fraud, the banking industry should reduce opportunities and employee negative rationalization through strong internal control. Research limitations/implications - The findings of this study are useful for policymakers, bank managers, industry practitioners and academics to understand and subsequently implement strategies to mitigate asset misappropriation. Practical implications - Managerial implications, limitations of the study and suggestions for future research are also included in this paper. Originality/value - The main value of this paper is the determination of the key variables that constitute the fraud diamond theory and its dimensions on the asset misappropriation within the banking industry in Iran.

Keywords: Iran; Banking; Asset misappropriation; Fraud diamond theory (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-01-2018-0008

DOI: 10.1108/JFC-01-2018-0008

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