Factors stimulating corporate crime in Malaysia

Chin-Hong Puah, Sze-Ling Voon and Harry Entebang

MPRA Paper from University Library of Munich, Germany

Abstract: Building on the perception of both existing and potential investors in Kuching, Sarawak, this study aims to identify the factors that appear to stimulate corporate crime activity in organizations. A survey was carried out by distributing questionnaires to both types of investors selected on randomly basis. The findings reveal that corporate crime activities are mostly due to inadequate cash security practices, inadequate supervision as well as a lack of internal auditing. To minimize the effects of corporate crime on investors and organizations, managers should pay extra attention to these factors. On the other hand, future research within the context of corporate crime may consider the extent to which organizational crime can affect the shareholder value creation of organizations.

Keywords: Corporate Crime; Internal Control (search for similar items in EconPapers)
JEL-codes: K20 K42 (search for similar items in EconPapers)
Date: 2008, Revised 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:10679

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