Fraud disclosure tendency in banking system: impact of psychological contract breach and organizational factors

Iranian Journal of Accounting, Auditing and Finance

مقالات آماده انتشار، پذیرفته شده، انتشار آنلاین از تاریخ 05 شهریور 1402   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2023.83499.1376

نویسندگان

ali sheikhi¹؛ amin nazemi^{* 2}

¹accounting, shiraz university, shiraz, iran

²accounting. shiraz university, shiraz, iran

چکیده

This study addresses the impact of psychological contract breaches and organizational factors on fraud disclosure in the banking system. The statistical population includes all the employees and internal auditors in the banks listed on the stock exchange in 2022. The required information is collected via a questionnaire. Eight hypotheses are proposed and then tested by structural equation modeling. Results showed a significant negative relationship between interpersonal effect, employee transactional relationship, financial system instability, deficient organizational changes, and unethical organizational morality with fraud disclosure. However, results showed no significant relationship between past disclosure responses and fraud disclosure tendency. The mentioned organizational factors affect fraud disclosure via the mediating role of psychological contracts. The last hypothesis showed that employees have a high tendency to disclose fraud to their supervisors rather than disclosing it to the fraudster and internal auditors. This article is an innovative study because it is the first research that addresses the psychological contracts effects in the accounting and auditing field. Our results and findings by investigating the negative impact of psychological contract breach on the tendency to disclose fraud contribute to audit literature, fraud diamond, and fraud disclosure. Psychological contract breach might affect the “opportunity” element in the fraud diamond by not whistleblowing fraud. Management relies on their employees as an internal control against fraud.

کلیدواژه‌ها

Financial fraud whistleblowing؛ organizational factors؛ psychological contract breach؛ banks