Diamond Theory Research Articles

Religiosity as the moderating effect of diamond fraud and personal ethics on fraud tendencies

<p class="IABSSS"><strong>Purpose</strong> - This study aims to determine the effect of each dimension of diamond fraud (pressure, opportunity, rationalization, capability) and personal ethics on the fraud tendency (assets misappropriation) and understanding of religiosity as moderating variable.</p><p class="IABSSS"><strong>Method </strong>- The study was conducted by survey method. The samples are amil zakat in Yogyakarta. Data analysis in this study applied multiple linear regression analysis with IBM SPSS version 22. The instruments were adopted from previous research.</p><p class="IABSSS"><strong>Result</strong> - The results of data analysis in this study show that there are positive influences between elements of diamond fraud (pressure, opportunity, rationalization, capability) on the fraud tendency (assets misappropriation) but personal ethics do not influence the fraud tendency. While the understanding of religiosity is able to moderate elements of diamond fraud (pressure, opportunity, rationalization, capability) and personal ethics.</p><p class="IABSSS"><strong>Implication</strong> - Future research can expand the object of research in several other provinces. In addition, fraud theory used is Fraud Diamond Theory. Whereas now there has been an increase in the cause of fraud, which is arrogance and evolved into Fraud Pentagon Theory, so that the next arrogance variable can be added as an independent variable.</p><p><strong>Originality</strong> - This reseacrh is still using samples in one province, and Amil Zakat sample was chosen as a sample because based on data submitted by BAZNAS.</p>

Pengaruh Elemen Fraud Diamond Theory Terhadap Financial Statement Fraud

The purpose of this study was to determinate the effect fraud diamond theory in financial statement fraud. The population in this study are manufacturing companies sector consumer goods industry listed on the Indonesia Stock Exchange in 2015-2018. The sampling technique used was purposive sampling method and obtained 112 samples. Data analysis using multiple linear regression analysis techniques and processed with IBM SPSS Statistics 25 software. The results showed that the financial target, ineffective monitoring, auditor report and changes in directors had a simultaneous effect on financial statement fraud. Partially, financial target affect financial statement fraud, while ineffective monitoring, auditor report and change of director do not affect the financial statement fraud.

Is the fraud diamond perspective valid in Kenya?

PurposeThe purpose of this study was to determine the influence of the elements of the fraud diamond theory in detecting financial statement fraud among non-financial firms in Kenya. Secondary data used to calculate ratios and figures representing the study variables was collected using a checklist for each of the targeted firms listed in the Nairobi Securities Exchange in Kenya for the 2013-2017 period.Design/methodology/approachSecondary data used to calculate ratios and figures representing the study variables was collected using a checklist for each of the targeted firms listed in the Nairobi Securities Exchange in Kenya for the 2013-2017 period. Convenience sampling technique was used to come up with a sample size of 35 out of the targeted population of 45 non-financial firms listed in Kenya (78% representation). This sample size was representative enough of the targeted population.FindingsThe results strongly supported that all the four elements of the fraud diamond triangle influenced financial statement fraud in Kenya. However, using three parameters, namely R2, predicted sign and standard error, to compare the applicability of either the Yoon et al. (2006) or the modified Jones (1991), our study findings are mixed. It is therefore imperative that a new model should be developed in detecting earnings management in the Kenyan context. Note that including other variables will to a greater extent increase the explanatory power in detecting earnings management practiced by non-financial firms listed in Kenya.Research limitations/implicationsUse of secondary information in the study was one limitation. Certain financial information was missing from some of the targeted firms’ official websites and the Nairobi Securities Exchange research handbooks. The researcher ensured that only non-financial firms whose audited financial statements were easily accessible were included in the study. Firms whose records were not readily available were excluded from the survey.Practical implicationsPractically, this study enables regulatory authorities in Kenya to understand the extent with which each element of the fraud diamond theory could be relied on in detecting financial statement fraud. Moreover, it will advise them on the areas to lay more emphasis when attempting to detect financial statement fraud using this model.Originality/valueThe main value of this study is the determination of the key elements of the fraud diamond theory, which have influence on financial statement fraud among non-financial firms listed in Kenya.

Construction of Sichuan Liquor Industry Competitiveness Evaluation Model from the Perspective of Diamond Theory

With the acceleration of economic integration, the development of Internet platform, big data technology, and the elimination of “liquor production line” from the restricted category, the development of Sichuan liquor industry is bound to usher in a new trend. This paper analyzes the current situation of Sichuan liquor industry development, and then based on Porter diamond theory, analyzes the competitiveness of Sichuan liquor industry, on this basis, combined with the Haken synergy theory, constructs an evaluation model to measure the competitiveness of Sichuan liquor industry. This will lay a foundation for the evaluation of the competitiveness of Sichuan liquor industry and the path to enhance the competitiveness of Sichuan liquor industry in the future, so as to promote the high-quality and sustainable development of Sichuan liquor industry. At the same time, it also provides reference for other regions or China’s liquor industry competitiveness evaluation.

Old and New in Business Ethics Theory

This paper aims to show the need to study both classical and modern theories in business ethics. It is necessary because social relations in production change, as do production conditions, the relationship between owners and workers, employees. The aim of the article is also to demonstrate the possible deviations from the natural, basic principles of ethical behavior in business and to look for opportunities to regulate them and limit the opportunities for their manifestation. This study has an epistemological character, dedicated to studying the evolution of fundamental ethical theories explaining the interaction between subjects in the ethical ecosystem. In developing the article, descriptive analysis was used to identify, analyze, and summarize the main features of poodle theories in business ethics. This paper has its theoretical basis of a rich category of tools and classical theories in aesthetics; new business ethics theories are being developed as an inalienable part of the ethical ecosystem. The evolution of the productive forces has had its irreversible impact on the ethical relations in the social system and on each business unit as a whole. The interrelations between the main religions professed by mankind − Christianity, Judaism and Islamic religion with the main category assessing the return on investment, namely the interest rate, are analyzed. The conclusions have been drawn about this type of income in the older religions and newer religions. Basic new business ethics theories are analyzed, such as the Theory of moral hazard, Agency Theory, Diamond’s Theory of delegated monitoring, Rent-Seeking. Research on the evolution of basic business economics theories is usually done based on theoretical analysis and much less based on specific business cases. Here is presented the manifestation of modern theories in business ethics, particular cases of changes in the state of business ecosystems and possibility that basis can also serve as a legal and regulatory initiative to precisely regulate these deviations and their sanction. The chosen form of research is sharing the opinions of the author of the study. In this article, the author seeks the connection, the integration of ethics in the functioning of the business system due to the severance of the direct relationship between owners and employees and the emergence of intermediaries as agents to whom decision-making rights are delegated. The severance of this relationship is at the heart of the evolutionary development of the ethical business side in the context of existing constraints. Keywords: Business Ethics, Moral Hazard, Rent-Seeking, Diamond Theory, Agency Theory.

La danza como forma de conocimiento. Pensar la complejidad: quiasmos y diamantes

The aesthetic tools proposed in this article pursue the intention of articulating and reflecting on dance as a phenomenon and artistic practice both from its generative and reflective ability. For that purpose I establish analogies between the complexities that aesthetic theory and dance share, from the modal interrelationships proposed in Estética modal, which give us the access to think in terms of transitivity, movement and interrelation. Especially in this article, I intend to focus on the intermediate playing field of tension and conflict of the aesthetic experience from the attractive Diamond Theory

Exterminating Corruption in Nigeria: <i>The Cressey’s Approach</i>

The two objectives set for this research were to assess how well, the Cressey’s hypothesis, also known as fraud triangle theory, can explain the reasons behind corruption in Nigerian institutions, and to assess the significance of capability from the fraud diamond theory, towards the detection and prevention of corruption in Nigeria. The researcher adopts a critical review approach of past literature. From the conclusion reached, two recommendation for successful eradication of corruption in Nigeria are: (1) to adopt the Cressey’s fraud triangle approach as well as the fraud diamond to fight corruption (in micro level), from organization to organization and (2), to adopt a more fundamental approach similar to the Hong Kong’s Two-Pronged approach to improve overall accountability and fight opportunity for corruption from a wider macro level. Suggested step for the federal government of Nigeria to successfully fight corruption at a macro level, is to merge the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC) to form one single and properly resourced independent corruption fighting agency, similar to that of Hong Kong’s Independent Commission Against Corruption (ICAC).

From the Triangle to the Rhombus: Exploration, Systematization, and Material for a Genealogical Theory

In this work, we aim to systematize the so-called diamond theory into a well-designed and explicated theory, that we will name “of rhombus”. After introducing the problem of the number of ancestors, and offering a solution to the paradox the usual mathematical solution creates, I offer an equation that finds the number of ancestors lost for coalescence events. We discuss the main reasons for coalescence and its implications. We also apply this equation (to the best of our knowledge never before found in the relevant literature) to two specific cases: the point at which the number of theoretical ancestors becomes greater than the living population and the Toba catastrophe theory, which states that at some point the number of living human beings shrank to 6,500.

FRAUD DIAMOND THEORY DAN KUALITAS PENGELOLAAN KEUANGAN DENGAN MODERASI SISTEM PENGENDALIAN INTERNAL

Regional financial management is a key element in good governance. The preparation of financial statements based on government accounting standards is a form of quality financial statement management. It can shows the performance of government that always realizes transparency and accountability of local governments. This study aims to examine the effect of fraud diamond theory on the quality of financial management with an internal control system as a moderating variable. This study uses quantitative methods and data samples of 90 employees in the Regional Apparatus Organization (Organisasi Perangkat Daerah – OPD) Malang City, East Java, with a purposive sampling technique based on criteria. Data analysis using Path Analysis techniques. The results showed that pressure, opportunity, rationalization and ability affect the quality of financial management. While the internal control system is not able to strengthen or weaken the influence of pressure, opportunity, rationalization and ability to the quality of financial management.

DETECTION ANALYSIS ON FRAUDULENT FINANCIAL REPORTING USING FRAUD SCORE MODEL

This study aims to examine the elements of fraud in the fraud diamond theory. Fraud is proxied by seven variables consisting of three pressure elements namely financial target, financial stability, external pressure, two variables of opportunity element, namely effective monitoring and nature of industry, one variable from the rationalization element, namely change in auditor, one variable from capability element namely change in directors, which is hypothesized to affect financial statements fraud. This study uses earnings management to see the potential for fraudulent financial statements. Earning management is measured using the F-Score indicator. The research sample was selected using a purposive sampling method from 30 manufacturing companies and a research period of 5 years to obtain the number of sample units of 155 data which is listed on the Indonesia Stock Exchange (IDX) for the period of 2013 to 2017. The hypothesis testing used a multiple regression analysis model using SPSS 23. The results of the study indicate that financial targets and changes in auditor financial stability have a significant positive effect on fraudulent financial statements. While external pressure, effective monitoring, nature of industry, financial stability, change of directors, have no effect on financial statements fraud.

Analisis Fraud Diamond Theory dalam Mendeteksi Terjadinya Manajemen Laba pada Laporan Keuangan Perusahaan

<p>Penelitian ini bertujuan untuk menguji elemen-elemen fraud dalam teori <em>fraud diamond</em> terhadap indikasi adanya manipulasi laporan keuangan yang dipresentasikan dengan manajemen laba pada perusahaan pembiayaan di Indonesia tahun 2014-2018. Variabel independen yang digunakan dalam penelitian ini adalah kestabilan keuangan, kepemilikan institusional, kualitas auditor eksternal,� pengawasan yang efektif, pergantian auditor eksternal, rasio total akrual terhadap total aset, perubahan direksi dan jumlah komisaris independen, sedangkan variabel dependen yang digunakan adalah manipulasi laporan keuangan yang diproksikan dengan manajemen laba. Penelitian ini menggunakan 75 sampel yang berasal dari 15 perusahaan pembiayaan yang terdaftar di Bursa Efek Indonesia pada tahun 2014-2018. Penelitian ini dilakukan dengan metode kuantitatif menggunakan data sekunder. Analisis data menggunakan model regresi berganda berbasis data panel, dan menggunakan ukuran perusahaan, leverage serta umur perusahaan sebagai variabel kontrol. Hasil dari penelitian ini menunjukkan bahwa terdapat tiga variabel yang berpengaruh signifikan dalam mendeteksi terjadinya manipulasi laporan keuangan, antara lain kestabilan keuangan, rasio total akrual terhadap total aset, dan jumlah dewan komisaris independen. Variabel tersebut merepresentasikan tiga elemen dalam <em>fraud diamond theory</em> yaitu kestabilan keuangan mempresentasikan elemen tekanan, rasio total akrual terhadap total aset mempresentasikan elemen rasionalisasi dan jumlah dewan komisaris independen mempresentasikan elemen kompetensi.</p><p><strong><em><br /></em></strong><strong><em></em></strong></p><p><strong>�</strong></p>

KECURANGAN AKADEMIK PADA MAHASISWA AKUNTANSI BERDASARKAN PERSPEKTIF FRAUD DIAMOND

The purpose of this research is to examine which factors that drive students especially that majoring in accounting, commit academic dishonesty based on fraud diamond theory and refers to (Sabli, Hamid, Haron, & Wahab, 2018) research. Based on all initial research, we can see that there are many inconsistent results from many universities. The sampling method that we use for this research is purposive sampling using questionnaires. The object of this research is Undergraduate Accounting Student from one of the Public University in Tangerang (XYZ) from the second to the eighth semester (2015-2018 batch), within the total of 260 respondents. Those data samples are processed with Structural Equation Model (SEM). The result of this research shows that only rationalization has positive significant correlation to academic dishonesty. The model of this research is proven to fulfill the goodness-of-fit, unidimensionality, and reliability standard. The result is adequate to provide input about the importance of maintaining integrity, especially because most of these students will become an accountant in the future.
 Keywords: Fraud diamond, academic dishonesty, accounting student

Detection of Fraudulent Financial Statement; Can Perspective of Fraud Diamond Theory be applied to Property, Real Estate, and Building Construction Companies in Indonesia?

The increasing number of cases related to accounting scandals in the world has caused various parties to assume that management has commited fraudulent financial statement. Detection of fraudulent financial statements must be carried out so it can be prevented fraud and the possibility of a scandal is prolonged. This research examines the effects of pentagon fraud theory (pressure, opportunity, rationalization, competence and arrogance toward fraudulent financial statement: The property, real estate and building construction companies listed on Indonesia Stock Exchange (IDX) in 2014-2018 periods The data used were the secondary data based on the purposive sampling method, the number of companies were 29 companies with 5 years observation. Based on logistic regression analysis, pressure has an impact on fraudulent financial statements on the significant value of 0.045. Opportunity has no impact on fraudulent financial statements on the significant value of 0.077. Rationalization has no impact on fraudulent financial statements on the significant value of 0.291. Competence has no impact on fraudulent financial statements on the significant value of 0.107. Arrogance has an impact on fraudulent financial statements on the significant value of 0.001.

KECURANGAN LAPORAN KEUANGAN DALAM PERSPEKTIF FRAUD DIAMOND THEORY: STUDI EMPIRIS PADA PERUSAHAAN SUB SEKTOR TRANSPORTASI DI BURSA EFEK INDONESIA

This study aims to obtain empirical evidence in detecting fraudulent financial statements from the perspective of 'fraud diamond theory'. The proxy variables used in this study are the influence of pressure, opportunity, rationalization, and ability. This study uses a sample of transportation sub-sector companies listed on the Indonesia Stock Exchange (IDX) with the 2015-2017 research period. This research is expected to contribute to the development of accounting science, especially in the field of forensic accounting regarding factors that can affect companies to conduct fraudulent financial statements by implementing indicators of diamond fraud. Hypothesis testing used multiple linear regression analysis with the help of application eviews software, to help process research data in the form of panel data. The results of this study indicate that pressure, opportunity, rationalization, and ability together were not significantly influence the tendency of fraudulent financial statements.

Demand Conditions According to Porter’s Diamond and Competitive Advantage of Firms of Pakistan Automotive Industry

The purpose of this study was to investigate theoretical and practical implications of Porter’s diamond demand conditions attribute improving the performance of firms in the automotive industry of Pakistan. Empirical based, positivism philosophy governs the study; pilot study was the integral part which entailed finalizing the self-administered questionnaire through which instrument reliability and validity established. Research methodology included various facets of empirical research. Data analysis and findings drawn by applying statistics, both descriptive and inferential. Justified by study findings safe conclusions drawn that Porter’s diamond demand conditions do have the strength to provide positive impact on the performance of firms operating in the auto industry. Through this study industry players arguably gain insight on diamond conditions context and improve the performance of firm. This is the first time such study was conducted in Pakistan. Demand conditions determinant study made contribution to theory and supported that Porter’s diamond demand conditions are viable component to be applied on industry like automotive. Practical implications include improving the performance of firms by effective use of demand conditions determinant by the practicing managers. Government can understand the concept of demand conditions and its positive implication for the industry. The diamond theory demand conditions attribute is tested for the first time in automotive industry of Pakistan. The study results are specific to the auto industry of Pakistan. Generalizability of results in other industries may be tested with further future research.

FRAUD OF FINANCIAL STATEMENTS IN DIAMOND THEORY'S PERSPECTIVE: EMPIRICAL STUDY OF TRANSPORTATION SUB SECTOR COMPANIES IN THE INDONESIA STOCK EXCHANGE

This study aims to obtain empirical evidence in detecting fraudulent financial statements from the perspective of 'fraud diamond theory'. The proxy variables used in this study are the influence of pressure, opportunity, rationalization, and ability. This study uses a sample of transportation sub-sector companies listed on the Indonesia Stock Exchange (IDX) in the period of 2015-2017. This research is expected to contribute to the development of accounting science, especially in the field of forensic accounting regarding factors that can affect companies to conduct fraudulent financial statements by implementing indicators of diamond fraud. Hypothesis testing used multiple linear regression analysis with the help of application eviews software, to help process research data in the form of panel data. The results of this study indicate that pressure, opportunity, rationalization, and ability together were not significantly influence the tendency of fraudulent financial statements.

Fraudulent Financial Reporting Based of Fraud Diamond Theory: A Study of the Banking Sector in Indonesia

The research aims to analyse whether external pressure, financial stability, financial targets, ineffective monitoring, rationalization and capability effect on fraudulent financial reporting. The population this study is banking company listed on the Indonesia Sctock Exchange with a total sample of 87 banking companies in 2011-2016. Based on the results of research using regression analysis, only external variables of incentive and financial targets have a positive effect on fraudulent financial reporting. Meanwhile, financial stability and capability have a negative impact on fraudulent financial reporting. Further, other variables such as ineffective monitoring and rationalization do not affect fraudulent financial reporting.

Examining fraud risk factors on asset misappropriation: evidence from the Iranian banking industry

PurposeThe paper aims at examining the influences of the elements of fraud diamond on the asset misappropriation within the banking industry of Iran. Primary data were collected through 191 survey questionnaires administered among employees of the top three banks in Iran, which own above 60 per cent of market shares in the banking industry of the country.Design/methodology/approachPrimary data were collected through 191 survey questionnaires administered among employees of the top three banks in Iran, which own above 60 per cent of market shares in the banking industry of the country.FindingsResults strongly supported that all four elements of fraud risk significantly influence bank employee asset misappropriation in Iran. To minimize employee fraud, the banking industry should reduce opportunities and employee negative rationalization through strong internal control.Research limitations/implicationsThe findings of this study are useful for policymakers, bank managers, industry practitioners and academics to understand and subsequently implement strategies to mitigate asset misappropriation.Practical implicationsManagerial implications, limitations of the study and suggestions for future research are also included in this paper.Originality/valueThe main value of this paper is the determination of the key variables that constitute the fraud diamond theory and its dimensions on the asset misappropriation within the banking industry in Iran.

Million dollar gamblers: a case of embezzlement in South Whitehall Township

Theoretical basis The fraud diamond theory, the COSO framework on internal control and theories of ethical leadership and ethical decision making are applied. Research methodology The details of this case were compiled using publicly available information, including court records and news reports. No modifications were made to the names of individuals or places mentioned in the case. All resources have been properly cited. Case overview/synopsis Employee embezzlement is a common issue in limited resource organizations when adequate controls are not in place to prevent or detect fraud. In such organizations, personal financial hardships can drive individuals to commit crimes that are out of character. This case is a story of a respectable small-town couple implicated in a near million dollar embezzlement scheme. Students are asked to consider what went wrong and propose solutions for the prevention of similar crimes. Lessons learned from this case emphasize the importance of ethical leadership, creating a strong ethical environment and how small unethical acts can escalate over time. Complexity academic level Instructors can utilize this case to teach the topics of ethical leadership and decision making, fraud prevention and detection and internal controls. The themes of this case fit well into any business ethics, accounting or auditing course at the undergraduate or graduate level. The case has been implemented in courses for full-time and part-time MBAs, and master’s programs in finance, human resources and accounting.

Forecasting housing units in Iran

Forecasting housing units in Iran