Determinants of manager behavior in committing fraudulent financial reporting

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This  research  adopts the  theory  of  planned  behavior  to examine  factors  affecting  the  manager’s  intention  to  commit fraudulent  financial  reporting. The  purpose  of  this  research are to  examine  the  effects of  attitude  toward  behavior, subjective  norms,  and  perceived  behavioral  control  on  the manager’s intention to commit fraudulent financial reporting moderated by ethical climate.

This  research  applies  a  mail  survey  as  data  collection method  and judgment sampling as  sample  collection method. Research  subjects  are  accounting  and  finance  managers  of manufacture industry in Indonesia. There are 1,700 questioners to be distributed during the research. However, there are only 148  of  the  186  returned  questioners  to  be  included  in  the research  analysis.  The  remaining  questioners  are  excluded because  of  defects (38). The  research  uses  a Structural Equation Model to analyse the hypotheses of the study.

Empirical evidence finds that ethical climate moderates the effect of attitude toward behavior and subjective norms on the  manager’s  intentions  to  commit  fraudulent  financial reporting .  However, ethical  climate in significantly  moderates the effect of perceived behavioral control on the manager’s intentions to commit fraudulent financial
reporting.
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Original title: Determinan Perilaku Manajer dalam Melakukan Kecurangan Penyajian Laporan Keuangan
Author: Novita Weningtyas Respati, Universitas Lambung Mangkurat Banjarmasin, Indonesia
Presented at the "Simposium Nasional Akuntansi XIV Aceh 2011", Universitas Syah Kuala Banda Aceh.

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