The Effect of Organization Type and Size on Fraud Reporting

• In Event: Accounting, Behavior and Organizations I

Abstract

Fraud is often covered within business literature in the context of for-profit organizations. However, there is a paucity of coverage when that context changes to non-profit organizations. Similarly, fraud at large firms tends to receive greater study than does fraud at smaller firms. Applying a combination of stakeholder salience theory and whistleblowing theory, this paper establishes a case for such comparisons. Polling 153 full-time workers at full-time positions within non-profit or for-profit organizations yields interesting insights. Namely, the data suggests a greater desire to whistleblow for those who work at for-profit organizations, especially as the organizational size is large or international. This suggests further research is warranted to investigate non-profit whistleblowing policies and practices. Local for-profit organizations and international non-profit organizations should consider whether their mission, vision, or practice might inadvertently cause employee passions for the cause to create rationalization conundrums out of alignment with proper accounting practices.

Authors

• Andrea Scheetz, Radford University

• Aaron Wilson, Ohio University

• Joseph M Wall, Marquette University

• Tonya Smalls, Clark Atlanta University