Empirical findings of Mitigating Asset Misappropriation among Bank Employees: Fraud Diamond Theory Perspective
This study investigated asset misappropriation among bank employees based on fraud diamond theory. Primary data were collected and analysed using 320 questionnaires survey among the employees of top three largest banks in Malaysia. The findings revealed that all the four elements of the Fraud Diamond Theory, namely rationalization, capability, pressure and opportunity, contribute to asset misappropriation. The findings imply that in order to minimize asset misappropriation, it is important for banking industries to reduce opportunity, financial and work pressure and employees negative rationalization through stronger internal control, segregation of duties and fair work assignment. Hence, this study has contributed to the literature on asset misappropriation occurrence which is not widely discussed especially in the context of the banking industry in developing country.
Keywords - Asset misappropriation, Banking, Fraud diamond theory.