Predicting Fraudulent Behavior: An Examination of Characteristics Commonly Exhibited by Fradulent DoD Contractors.

Abstract

This study examines the relationship between company size, slack, return on investment, and the frequency of fraudulent behavior. A model is proposed in which an increase in company size and a decrease in company slack and return on investment would increase the frequency of fraudulent behavior. A test of the model showed strong support between a relationship between company size and incidents of fraudulent behavior. Additionally, the results suggest that levels of slack may contribute to the frequency of fraud. Further tests provide no support for the relationship between the decrease in return on investment and the increase in the frequency of fraudulent behavior. Overall, the results suggest that large companies with lower levels of slack are more likely to engage in fraudulent behavior. Several explanations for this pattern are explored in the study.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1996
Accession Number
ADA319501

Entities

People

  • Dwayne P. Sellers

Organizations

  • Air Force Institute of Technology

Tags

DTIC Thesaurus Topics

  • Business Administration
  • Contractors
  • Frequency
  • Investments

Fields of Study

  • Business

Readers

  • Government and Public Administration Law.
  • Marine Hydrodynamics
  • Mathematics or Statistics