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Bankers’ demographic characteristics and their perception on the risk of asset misappropriation: Malaysian evidence / Anuar Nawawi, Mohamad Afzhan Khan Mohamad Khalil and Nurmazilah Mahzan

Fraud has been a world-wide problem for many years and it affects not only the victims, but also companies in a very broad spectrum. The purpose of this study is to develop a reliable and valid construct for risk of asset misappropriation and to assess the association between bankers’ demographic fa...

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Main Authors: Nawawi, Anuar, Mohamad Khalil, Mohamad Afzhan Khan, Mahzan, Nurmazilah
Format: Article
Language:English
Published: 2017
Subjects:
Auditing. Auditors
Online Access:https://ir.uitm.edu.my/id/eprint/83385/1/83385.pdf
https://ir.uitm.edu.my/id/eprint/83385/
https://e-ajuitmct.uitm.edu.my/v3/
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spelling my.uitm.ir.833852023-09-04T00:11:35Z https://ir.uitm.edu.my/id/eprint/83385/ Bankers’ demographic characteristics and their perception on the risk of asset misappropriation: Malaysian evidence / Anuar Nawawi, Mohamad Afzhan Khan Mohamad Khalil and Nurmazilah Mahzan eaj Nawawi, Anuar Mohamad Khalil, Mohamad Afzhan Khan Mahzan, Nurmazilah Auditing. Auditors Fraud has been a world-wide problem for many years and it affects not only the victims, but also companies in a very broad spectrum. The purpose of this study is to develop a reliable and valid construct for risk of asset misappropriation and to assess the association between bankers’ demographic factors and their perception on the risk of asset misappropriation. The fraud triangle theory that underlies this paper states that asset misappropriation is committed by individual due to three factors viz. opportunity, pressure, and rationalisation. Interviews and pilot study was conducted after constructing the research instrument to ensure validity of the measurement. The survey questionnaires were administered to 553 bankers out of which 334 were usable responses. This is a cross sectional study conducted on personnel of eight financial institutions in Malaysia in the year 2013. A final list of eleven items was found to be conclusive after testing for confirmatory factor analysis (chi square = 4.47; GFI = 0.93; CFI = 0.97; NFI = 0.96; TLI = 0.95; RMSEA = 0.10). Subsequently, a one-way ANOVA was employed to test for significant associations between the bankers’ demographic characteristics and their perception on the risk of asset misappropriation. It was found that bankers’ age (p = 0.01), working experience (p = 0.01), marital status (p = 0.01) and academic qualification (p = 0.10) had significant bearings on their perceptions of the risk of asset misappropriation within the financial institutions. This study recommends that the banking organizations focuses on improving its internal control system and communicate code of ethics to reduce the possibility of misconducts. Future research should focus on qualitative methodology and an in-depth review on fraud cases in Malaysia should be studied to provide more information to reduce the risk of losses in the banking sector. 2017 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/83385/1/83385.pdf Bankers’ demographic characteristics and their perception on the risk of asset misappropriation: Malaysian evidence / Anuar Nawawi, Mohamad Afzhan Khan Mohamad Khalil and Nurmazilah Mahzan. (2017) e-Academia Journal <https://ir.uitm.edu.my/view/publication/e-Academia_Journal/>, 6 (1). pp. 228-239. ISSN 2289-6589 https://e-ajuitmct.uitm.edu.my/v3/
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Auditing. Auditors
spellingShingle Auditing. Auditors
Nawawi, Anuar
Mohamad Khalil, Mohamad Afzhan Khan
Mahzan, Nurmazilah
Bankers’ demographic characteristics and their perception on the risk of asset misappropriation: Malaysian evidence / Anuar Nawawi, Mohamad Afzhan Khan Mohamad Khalil and Nurmazilah Mahzan
description Fraud has been a world-wide problem for many years and it affects not only the victims, but also companies in a very broad spectrum. The purpose of this study is to develop a reliable and valid construct for risk of asset misappropriation and to assess the association between bankers’ demographic factors and their perception on the risk of asset misappropriation. The fraud triangle theory that underlies this paper states that asset misappropriation is committed by individual due to three factors viz. opportunity, pressure, and rationalisation. Interviews and pilot study was conducted after constructing the research instrument to ensure validity of the measurement. The survey questionnaires were administered to 553 bankers out of which 334 were usable responses. This is a cross sectional study conducted on personnel of eight financial institutions in Malaysia in the year 2013. A final list of eleven items was found to be conclusive after testing for confirmatory factor analysis (chi square = 4.47; GFI = 0.93; CFI = 0.97; NFI = 0.96; TLI = 0.95; RMSEA = 0.10). Subsequently, a one-way ANOVA was employed to test for significant associations between the bankers’ demographic characteristics and their perception on the risk of asset misappropriation. It was found that bankers’ age (p = 0.01), working experience (p = 0.01), marital status (p = 0.01) and academic qualification (p = 0.10) had significant bearings on their perceptions of the risk of asset misappropriation within the financial institutions. This study recommends that the banking organizations focuses on improving its internal control system and communicate code of ethics to reduce the possibility of misconducts. Future research should focus on qualitative methodology and an in-depth review on fraud cases in Malaysia should be studied to provide more information to reduce the risk of losses in the banking sector.
format Article
author Nawawi, Anuar
Mohamad Khalil, Mohamad Afzhan Khan
Mahzan, Nurmazilah
author_facet Nawawi, Anuar
Mohamad Khalil, Mohamad Afzhan Khan
Mahzan, Nurmazilah
author_sort Nawawi, Anuar
title Bankers’ demographic characteristics and their perception on the risk of asset misappropriation: Malaysian evidence / Anuar Nawawi, Mohamad Afzhan Khan Mohamad Khalil and Nurmazilah Mahzan
title_short Bankers’ demographic characteristics and their perception on the risk of asset misappropriation: Malaysian evidence / Anuar Nawawi, Mohamad Afzhan Khan Mohamad Khalil and Nurmazilah Mahzan
title_full Bankers’ demographic characteristics and their perception on the risk of asset misappropriation: Malaysian evidence / Anuar Nawawi, Mohamad Afzhan Khan Mohamad Khalil and Nurmazilah Mahzan
title_fullStr Bankers’ demographic characteristics and their perception on the risk of asset misappropriation: Malaysian evidence / Anuar Nawawi, Mohamad Afzhan Khan Mohamad Khalil and Nurmazilah Mahzan
title_full_unstemmed Bankers’ demographic characteristics and their perception on the risk of asset misappropriation: Malaysian evidence / Anuar Nawawi, Mohamad Afzhan Khan Mohamad Khalil and Nurmazilah Mahzan
title_sort bankers’ demographic characteristics and their perception on the risk of asset misappropriation: malaysian evidence / anuar nawawi, mohamad afzhan khan mohamad khalil and nurmazilah mahzan
publishDate 2017
url https://ir.uitm.edu.my/id/eprint/83385/1/83385.pdf
https://ir.uitm.edu.my/id/eprint/83385/
https://e-ajuitmct.uitm.edu.my/v3/
_version_ 1776250568190197760
score 13.211869

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