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Organisational susceptibility to fraud and theft, organizational size and the effectiveness of management controls: some UK evidence
Author(s) -
Barnes Paul,
Webb Jill
Publication year - 2007
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.1320
Subject(s) - context (archaeology) , principal (computer security) , business , empirical evidence , computer security , computer science , biology , paleontology , philosophy , epistemology
This paper examines the principal determinants of an organization's susceptibility to theft and fraud in the context of a rational economic framework in which the level of protection is determined by the minimization of cost. The empirical study shows that, adjusting for differences in organizational type and industrial sector, both organizational susceptibility and the size of a typical theft or fraud increase with organizational size. Access to resources and the manner in which the theft or fraud is perpetrated are also important determinants of the money lost. However, they are unaffected by management controls or the nature of their violation. Copyright © 2007 John Wiley & Sons, Ltd.