In “National Culture and Occupational Fraud Magnitude: The Moderating Role of Fraud Type,” accepted for publication by the Journal of Forensic Accounting Research, Culverhouse’s Pratyush Sharma and his coauthors Rachel Chung of William & Mary, Chih-Chen Lee of Northern Illinois University, and Jonathan Pinto of Imperial College, London investigate the relationship between national culture and the magnitude of occupational fraud.
Guided by national culture theory and economic theory of crime, the authors propose that a country’s culture, as measured by Hofstede’s six national culture dimensions: power distance, individualism, achievement orientation, uncertainty avoidance, long-term orientation, and indulgence, is related to the magnitude of occupational fraud.
Further, they propose that the type of fraud moderates this relationship. They test these effects using a two-level model on a dataset of 2,898 occupational fraud cases across forty-one countries and find that uncertainty avoidance and long-term orientation display significant positive association with occupational fraud magnitude, while power distance and achievement orientation display marginally significant positive association. Moreover, the effects of achievement orientation, uncertainty avoidance, and indulgence are moderated by fraud type, while power distance and long-term orientation show marginally significant interaction effects.