The effect of organizational paranoid on fraud in the financial reporting system with the mediation of organizational loyalty

Document Type : Research Paper

Authors

1 Associate Professor of Accounting , payame Noor University, Tehran, IRAN

2 Instructor of Accounting , payame Noor University, Tehran, IRAN

Abstract

Organizational paranoid as a personality disorder will cause unethical behavior tendencies in the organization. Cheating of accountants is one of the most important tendencies that is the result of paranoid organizational suffixes. The purpose of this study is to investigate the effect of organizational paranoid on fraud in financial reporting, emphasizing the mediating role of organizational loyalty. The current research is quantitative in terms of implementation method. The collected data has been analyzed by the method of structural equations. The statistical population of the research in the time domain of 1402 includes accountants and financial managers of stock exchange member companies, who were selected using the structural equation sampling method. The research tool is a standard questionnaire. Research findings showed that organizational paranoid has a direct relationship with fraud in financial reporting, organizational paranoid has an inverse effect on organizational loyalty, and organizational loyalty has an inverse relationship with fraud in financial reporting. Finally, organizational paranoid will indirectly influence the fraudulent behavior of accountants through the mediation of organizational loyalty. Organizational paranoid suffixes by reducing the loyalty of accountants cause an increase in the fraudulent behavior of accountants and ultimately reduce the quality of financial reporting. The results of the present research, while developing theoretical foundations, help managers and organizational policy makers in order to identify organizational factors that drive fraudulent behaviors and prevent them from occurring.

Keywords

Main Subjects

References

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Journal of Accounting Advances
Volume 16, Issue 1
May 2024
Pages 243-274

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History

  • Receive Date: 11 March 2024
  • Revise Date: 19 December 2024
  • Accept Date: 20 January 2025

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