Management’s Behavior towards Fraudulent Financial Reporting: Using a Modified Theory of Planned Behavior

Abstract

This research applies the modified theory of planned behavior (MTPB) to corporate manager's decision-making and behavior related to detection of fraudulent financial reporting. The sample consists of 319 people selected from the statistical population consisting the board members, chief executive managers and financial managers. Hypotheses are tested using standard questionnaire and structural equations modeling. The results suggest that the modified theory of planned behavior can be an appropriate mechanism to predict manager decisions related to fraudulent financial reporting. This study is useful for regulators, standard developers, and the corporate stakeholders who seek a fraudulent behavior therapy for management financial reporting.

Keywords

• modified theory of planned behavior (mtpb)
• fraudulent financial reporting
• professional ethics
• decision making