Abstract
This study aims to examine the causal relationships between fraud triangle and Machiavellianism and fraud intention. Besides the fraud triangle components (pressure, opportunity, and rationalization), Machiavellianism and fraud intention also likely affect fraud. We run our experimental study at several Indonesian universities and use undergraduate accounting students as our subjects. Further, this study uses a 3x2x2 experimental design with 309 students as the subjects acting as purchasing managers. The results show that 1) individuals with high life pressure exhibit greater fraud intention than individuals with low life pressures, 2) individuals who are in a weak internal control condition have greater fraud intention than individuals who are in strong internal control conditions, 3) individuals with high rationalization of fraud have greater fraud intention than individuals with low rationalization, and 4)individuals with high Machiavellianism exhibit greater fraud intention than individuals with low Machiavellianism.
Highlights
Fraud is a commonly found act of crime. Priantara (2013) explains that fraud, along with terrorism, is a crime that receives great public attention
High Machiavellianism will result in greater unethical behavior than low Machiavellianism (Gunnthorsdottir et al, 2002)
This study proposes the following first hypothesis: H1: Individuals who are under high life pressure exhibit greater fraud intention than individuals who are under low life pressure
Summary
Fraud is a commonly found act of crime. Priantara (2013) explains that fraud, along with terrorism, is a crime that receives great public attention. Employees who have higher needs to develop and maintain power and success. A Machiavellian is an individual who lacks conventional morality and exhibits emotional detachment behavior and a tendency to manipulate people and situation (Christe & Geis, 1970). Individuals can be classified into two categories (high Mach vs low Mach) based on their orientation on the situations. Machiavellianism is an individual’s personality trait that tends to have great needs to develop and maintain power and success. Individuals with high Mach are associated with antisocial behaviors and focus on extrinsic goals, especially financial success (Tang 2008; Mbunda-Nekang, 2018). High Machiavellianism will result in greater unethical behavior than low Machiavellianism (Gunnthorsdottir et al, 2002).
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