IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v17y2025i1p204-213.html
   My bibliography  Save this article

Investigating Financial Reporting Fraud Intentions in Malaysian Small and Medium Enterprises (SMEs): A Proposed Framework

Author

Listed:
  • Yunita Awang
  • Azuraidah Taib
  • Shazalina Mohamed Shuhidan
  • Norfadzilah Rashid

Abstract

Fraud is widely regarded as the most important corporate problem in today's economic environment, and it is only becoming worse, especially in a tight-budget situation. Fraud in financial reporting refers to the intentional falsification of financial facts to mislead financial statement users. It undermines investors' trust in published financial statements. This study aims to identify the factors influencing intention for fraud in financial reporting in Malaysian Small and Medium Enterprises (SMEs). Hence, this study proposes a conceptual framework for financial reporting fraud intentions in Malaysian SMEs using the Theory of Planned Behaviour (TPB) as an underlying theory and supplemented by Rest's four-component model. The proposed framework comprises four main variables – attitude, subjective norm, perceived behavioral control and ethical judgment, while gender is treated as a control variable. This study enhances the current body of knowledge on unethical intention literature. It expands the applications of the TPB model in predicting intention for financial reporting fraud in the setting of small businesses. Additionally, the findings will contribute as a preventive safeguard against fraud in financial reporting

Suggested Citation

  • Yunita Awang & Azuraidah Taib & Shazalina Mohamed Shuhidan & Norfadzilah Rashid, 2025. "Investigating Financial Reporting Fraud Intentions in Malaysian Small and Medium Enterprises (SMEs): A Proposed Framework," Information Management and Business Review, AMH International, vol. 17(1), pages 204-213.
    • Handle: RePEc:rnd:arimbr:v:17:y:2025:i:1:p:204-213
    DOI: 10.22610/imbr.v17i1(I).4388
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/4388/2896
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/4388
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v17i1(I).4388?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:eme:ijoes0:ijoes-05-2017-0080 is not listed on IDEAS
    2. Cheolho Yoon, 2011. "Theory of Planned Behavior and Ethics Theory in Digital Piracy: An Integrated Model," Journal of Business Ethics, Springer, vol. 100(3), pages 405-417, May.
    3. Chechen Liao & Hong-Nan Lin & Yu-Ping Liu, 2010. "Predicting the Use of Pirated Software: A Contingency Model Integrating Perceived Risk with the Theory of Planned Behavior," Journal of Business Ethics, Springer, vol. 91(2), pages 237-252, January.
    4. Craig Smith, N. & Simpson, Sally S. & Huang, Chun-Yao, 2007. "Why Managers Fail to do the Right Thing: An Empirical Study of Unethical and Illegal Conduct," Business Ethics Quarterly, Cambridge University Press, vol. 17(4), pages 633-667, October.
    5. Yunita Awang & Suhaiza Ismail, 2018. "Determinants of financial reporting fraud intention among accounting practitioners in the banking sector," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 34(1), pages 32-54, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mauricio S. Featherman & Nick Hajli, 2016. "Self-Service Technologies and e-Services Risks in Social Commerce Era," Journal of Business Ethics, Springer, vol. 139(2), pages 251-269, December.
    2. Mohadzlishah Mazli, 2024. "The Impact of Consumer Ethics on Intention to Purchase Counterfeit Fashion Products," Information Management and Business Review, AMH International, vol. 16(3), pages 761-769.
    3. Amanda Chu & Patrick Chau & Mike So, 2015. "Explaining the Misuse of Information Systems Resources in the Workplace: A Dual-Process Approach," Journal of Business Ethics, Springer, vol. 131(1), pages 209-225, September.
    4. Peter Mudrack & E. Mason, 2013. "Ethical Judgments: What Do We Know, Where Do We Go?," Journal of Business Ethics, Springer, vol. 115(3), pages 575-597, July.
    5. Mateja Kos Koklic & Monika Kukar-Kinney & Irena Vida, 2016. "Three-Level Mechanism of Consumer Digital Piracy: Development and Cross-Cultural Validation," Journal of Business Ethics, Springer, vol. 134(1), pages 15-27, March.
    6. Casidy, Riza & Phau, Ian & Lwin, Michael, 2016. "The role of religious leaders on digital piracy attitude and intention," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 244-252.
    7. Mahmut Sonmez & Deli Yang & Gerald Fryxell, 2013. "Interactive Role of Consumer Discrimination and Branding against Counterfeiting: A Study of Multinational Managers’ Perception of Global Brands in China," Journal of Business Ethics, Springer, vol. 115(1), pages 195-211, June.
    8. Kos Koklic, Mateja & Kukar-Kinney, Monika & Vida, Irena, 2022. "Consumers’ de-ownership as a predictor of dark-side digital acquisition behavior: Moderating role of moral intensity and collectivism," Journal of Business Research, Elsevier, vol. 138(C), pages 108-116.
    9. Karla Borja & Suzanne Dieringer, 2022. "Is music piracy over? Comparing music piracy attitudes and behaviors between young generations," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(2), pages 899-924, June.
    10. Dongxiao Gu & Jingjing Guo & Changyong Liang & Wenxing Lu & Shuping Zhao & Bing Liu & Tianyue Long, 2019. "Social Media-Based Health Management Systems and Sustained Health Engagement: TPB Perspective," IJERPH, MDPI, vol. 16(9), pages 1-15, April.
    11. Pedro FrancŽs-G—mez & Lorenzo Sacconi & Marco Faillo, 2012. "Behavioral Business Ethics as a Method for Normative Business Ethics," Econometica Working Papers wp42, Econometica.
    12. Dan Wu & Guofang Nan & Minqiang Li, 2020. "Optimal Piracy Control: Should a Firm Implement Digital Rights Management?," Information Systems Frontiers, Springer, vol. 22(4), pages 947-960, August.
    13. Ritika Chopra & Anirudh Agrawal & Gagan Deep Sharma & Andreas Kallmuenzer & Laszlo Vasa, 2024. "Uncovering the organizational, environmental, and socio-economic sustainability of digitization: evidence from existing research," Review of Managerial Science, Springer, vol. 18(2), pages 685-709, February.
    14. Peter Mudrack & E. Mason, 2013. "Dilemmas, Conspiracies, and Sophie’s Choice: Vignette Themes and Ethical Judgments," Journal of Business Ethics, Springer, vol. 118(3), pages 639-653, December.
    15. Barbara Culiberg & Domen Bajde, 2014. "Do You Need a Receipt? Exploring Consumer Participation in Consumption Tax Evasion as an Ethical Dilemma," Journal of Business Ethics, Springer, vol. 124(2), pages 271-282, October.
    16. Wang, Xinghua & Zhang, Mengmeng & Yu, Yiqing & Hu, Biying & Yang, Xiantong, 2021. "Extending the theory of planned behavior to examine Chinese parents’ intention to use child care services for children under age 3," Children and Youth Services Review, Elsevier, vol. 129(C).
    17. Wang, Yi-Shun & Yeh, Ching-Hsuan & Liao, Yi-Wen, 2013. "What drives purchase intention in the context of online content services? The moderating role of ethical self-efficacy for online piracy," International Journal of Information Management, Elsevier, vol. 33(1), pages 199-208.
    18. Gazley, Aaron & Sinha, Ashish & Rod, Michel, 2016. "Toward a theory of marketing law transgressions," Journal of Business Research, Elsevier, vol. 69(2), pages 476-483.
    19. Kirsten Martin, 2012. "Diminished or Just Different? A Factorial Vignette Study of Privacy as a Social Contract," Journal of Business Ethics, Springer, vol. 111(4), pages 519-539, December.
    20. Maria Kakarika & Shiva Taghavi & Helena V. González-Gómez, 2024. "Don’t Shoot the Messenger? A Morality- and Gender-Based Model of Reactions to Negative Workplace Gossip," Journal of Business Ethics, Springer, vol. 189(2), pages 329-344, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arimbr:v:17:y:2025:i:1:p:204-213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.