Fraudulent Financial Reporting and Technological Capability in the Information Technology Sector: A Resource-Based Perspective
Motivated by the disproportionately high incidence of fraudulent financial reporting in the IT sector where technological capability is a major source of competitive advantage, this study investigates the possible relationship between technological capability and fraud probability in the IT sector....
| Autore principale: | |
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| Tipo di documento: | Elettronico Articolo |
| Lingua: | Inglese |
| Verificare la disponibilità: | HBZ Gateway |
| Interlibrary Loan: | Interlibrary Loan for the Fachinformationsdienste (Specialized Information Services in Germany) |
| Pubblicazione: |
2019
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| In: |
Journal of business ethics
Anno: 2019, Volume: 156, Fascicolo: 2, Pagine: 577-589 |
| Altre parole chiave: | B
Technological capability
B Information technology sector B Resource-based view B Fraudulent financial reporting |
| Accesso online: |
Volltext (lizenzpflichtig) |
| Riepilogo: | Motivated by the disproportionately high incidence of fraudulent financial reporting in the IT sector where technological capability is a major source of competitive advantage, this study investigates the possible relationship between technological capability and fraud probability in the IT sector. Technological capability is measured by a firm’s technical efficiency relative to peers in transforming cumulative R&D resources into innovative output, which is a source of competitive advantage, according to the resource-based view (RBV) of the firm. Technical efficiency is estimated via data envelopment analysis. A sample of fraud firms taken from Accounting and Auditing Enforcement Releases is matched with control samples of non-fraud firms. Consistent with the RBV, technological capability is found to have a negative and economically significant effect on fraud probability. Moreover, fraud probability is insignificantly associated with the scale efficiency of innovative activities, as investment in R&D resources per se is not a source of sustainable competitive advantage. |
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| ISSN: | 1573-0697 |
| Comprende: | Enthalten in: Journal of business ethics
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| Persistent identifiers: | DOI: 10.1007/s10551-017-3605-4 |
