Fraud and Corruption: A Convenience Perspective

Fraud and Corruption: A Convenience Perspective

by Petter Gottschalk


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Fraud and Corruption is at the core of financial crime by white-collar offenders. This book provides an introduction to the shadow economy and presents the theory of convenience for white-collar crime. It explains why so few are willing to blow the whistle on people in the elite for misconduct and crime. The book is aimed at readers who are training for and working in control functions. The book illustrates challenges in controlling public administration by political bodies. Readers will learn the definitions of fraud and corruption, the convenience perspective, the role of whistleblowers, and the importance of fraud and corruption investigations. In addition, it presents updated research on white-collar crime as explained by convenience theory and illustrated by problematic issues such as whistleblower retaliation.

Product Details

ISBN-13: 9781627342537
Publication date: 11/01/2018
Pages: 272
Product dimensions: 6.00(w) x 9.00(h) x 0.57(d)

About the Author

Petter Gottschalk is professor in the department of leadership and organizational behavior at BI Norwegian Business School in Oslo, Norway. He has published extensively on knowledge management, police investigation, fraud examination, financial crime and organized crime.

Table of Contents

Introduction ix

1 Characteristics of Fraud 1

Defi nition of Fraud 1

Causes of Fraud 2

Consequences of Fraud 6

Private Fraud Examinations 6

Acar Investigated by Sidley 9

2 Characteristics of Corruption 13

Defi nition of Corruption 13

Causes of Corruption 15

Consequences of Corruption 17

Control of Corruption 18

3 Th e Shadow Economy 21

Elements in the Shadow Economy 22

Expert Elicitation 25

Fraction of White-Collar Criminals 27

Fraction with Probability Distribution 28

Fraction of Off ender Groups 29

Fraction of Crime Categories 30

Fraction of Victim Groups 31

Gender Fractions 31

Total Crime Magnitude 32

Comparison with U.S. Estimates 34

4 Th e Th eory of Convenience 37

Economical Dimension: Motive 40

Organizational Dimension: Opportunity 43

Behavioral Dimension: Willingness 53

Financial Crime Signal Detection 63

Organizational Opportunity Expansion 65

Case Study of a Chief Financial Offi cer 68

Case Study of a Public Hospital 73

5 Convenience Th eory Testing 77

Convenience Orientation 78

Research Model 80

Research Results 82

Entitled to Fraud? 86

Motivational Characteristics 87

Neutralization Techniques 90

Th e CEO Case 92

Th e CFO Case 94

Discussion 95

Conclusion 98

Family Firms 98

Characteristics of Family Members 99

Case Studies of Family Members 102

Discussion 103

Conclusion 105

6 Case Study 107

Convicted Police Offi cer 108

Principal-Agent Th eory 110

Principal-Agent Behavior 112

Crime Opportunity 115

7 Recidivism in Crime 119

Recidivism Defi ned 120

Extent of Recidivism 120

Th eory of Recidivism 122

Predicting Recidivism 122

Convenience Th eory 124

Empirical Study 125

Th omas Middelhoff 126

8 Control Committees 133

Supervisory Body 134

Committee Performance 135

Research Model 136

Research Results 141

9 Whistleblower Retaliation 147

Retaliation Literature 148

Retaliation Actions 150

Retaliation Processes 150

Research Method 152

Retaliation Case 153

Case Discussion 156

Probability of Voicing 159

10 Fraud E xamination 167

Internal Investigations 168

Research Model 171

Research Method 173

Research Results 177

Research Refl ection 179

Institutional Deterioration 182

First Fraud Examination 185

Second Fraud Examination 191

Fraud Examination Failure 197

11 After Fraud and Corruption Scandals 201

Change Management 201

Research Method 202

Research Findings 206

Th eoretical Perspectives 208

Reports of Investigations 210

Conclusion 219

References 229

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