Antecedents and consequences of staff related fraud in the Ghanaian banking industry

Author:Alexander Ekow Asmah, Williams Abayaawien Atuilik, Dominic Ofori
Position:Department of Business Administration, Heritage Christian University College, Accra, Ghana
Pages:188-201
SUMMARY

Purpose The purpose of this paper is to investigate the antecedents and consequences of employee fraud, focusing on the banking industry in Ghana. Design/methodology/approach A major bank was selected for the case study analysis. The researchers employed qualitative data analysis for the study. Content analysis of investigation reports and interviews of employees from different functional areas were used as the... (see full summary)

 
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Antecedents and consequences of
starelated fraud in the Ghanaian
banking industry
Alexander Ekow Asmah,Williams Abayaawien Atuilik and
Dominic Ofori
Department of Business Administration, Heritage Christian University College,
Accra, Ghana
Abstract
Purpose The purpose of this paperis to investigatethe antecedents and consequences of employee fraud,
focusingon thebanking industry in Ghana.
Design/methodology/approach A major bank was selected for the case study analysis. The
researchers employed qualitative data analysis for the study. Content analysis of investigation reports and
interviewsof employees from different functional areas were used as the main data collection tools.
Findings This study found that loans contracted by bank employees with huge repayment
amounts put nancial pressure on them to commit fraud. The study also found that inadequate
controls in some areas of the bank can fuel the commission of fraud. In addition, aggrieved employees
have highly chances of committing fraud. Huge punitive consequences were noted to exist for the
employee who perpetrates the fraud and shareholders are also affected by the fraudulent behaviour of
employees.
Research limitations/implications Findings shown in the studyconrm the hypotheses of the fraud
triangle theory on the causes of fraud in spite of its criticisms. The ndingsare also consistent with extant
studies on the antecedentsand consequences of fraud. The use of one bank for the case study analysis as well
as the three-year analysis period imposes a limitation on the study. Future studies can explore fraud using
other different theoreticallenses. Gathering data from more than one bank and for a longer period of analysis
may provide more accurateresults.
Practical implications This study provides some recommendations for fraud prevention in the
banking industry in Ghana. The major one is the need for the central bank to collaborate with nancial
institutions to set up an effective credit worthiness system that will aid the monitoring of activities of the
banks. Banks should also ensure that systems of controlsare reviewed regularly to identify and deal with
fraud.
Originality/value This study is original, as it focuseson an industry that is highly susceptible to fraud
because of issuesof condentiality with data and with the scanty literature on fraud.
Keywords Banking, Fraud, Staff related
Paper type Research paper
Despite intense eorts to stamp out corruption, misappropriation of assets, and fraudulent
activities, it appears that fraud in its various forms is a problem that is increasing in frequency
and severity (The Certied Accountant, 2009).
1. Introduction
The fraudulent scandals that hit international corporations such as (Tyco, Merck and Co.
and WorldCom) have heightened both the awareness of professionals and investors to be
more careful and meticulous in making investment decisions. Without debate, fraud is a
JFC
27,1
188
Journalof Financial Crime
Vol.27 No. 1, 2020
pp. 188-201
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2019-0034
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm

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