Moral intensity and fraudulent financial reporting rationalization: evidence from a developing African country

PurposeThis study explores how accountants assess the moral intensity of fraudulent financial reporting (FFR) and its influence on their rationalization of FFR.Design/methodology/approachThe study collects data from 289 accountants using a self-completed questionnaire with six components of Jones' moral intensity and two accounting fraud scenarios. The data are analyzed using Harman's single-factor test, Pearson correlation, and multiple regression analysis.FindingsThe findings reveal that about one-third of accountants strongly rationalize FFR, with above-average moral intensity assessments. Each component of moral intensity significantly predicts their rationalization, highlighting its key psychological influence.Research limitations/implicationsThe study uses data collected from Nigeria to represent developing African countries with emerging capital markets and significant fraud concerns. The results may vary when comparing data from other developing countries.Originality/valueThe study provides a rare insight into how accountants weigh the issue-related moral imperative in situations leading to FFR within a developing African country context. The findings will serve as a benchmark for future research on FFR in other developing countries.