Fraud Transmission Mechanisms within Community: Peer Concealing and Hinting among Chinese Listed Corporations

IF 2.6 4区 管理学 Q3 MANAGEMENT
Jing Zhang, Yuan Feng, Yuntao Bai, Yongjian Lin
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Abstract

We explored the transmission mechanisms of corporate fraud and its punishments within social network communities. Using fraud triangle theory and trust triangle theory, we hypothesize four transmitting channels of how fraud commission and detection are affected by peers’ fraud and punishment. Based on Chinese listed corporations from 2008 to 2018, we first construct and detect interlocked social network communities with a community-detecting algorithm, and then examine hypotheses using a bivariate probit model with partial observability. Our findings indicate that peer-concealing and -hinting effects exist within social network communities. The peer-concealing effect decreases the likelihood of being detected when committing fraud, for those with more and closer fraudulent peers. The peer-hinting effect increases the likelihood of being detected when committing fraud, for those with more and closer punished peers. There is no evidence to support peer-contagion and vicarious-punishment effects. Thus, an improved understanding of the transmission mechanism of corporate fraud commission and detection within communities is provided to prevent and detect corporate fraud. In addition, stakeholders and regulators should be aware of the deviant subculture and social distancing in social network communities.
社区内欺诈传导机制:中国上市公司同业隐瞒与暗示
我们探讨了企业欺诈的传播机制及其在社交网络社区中的惩罚。利用欺诈三角理论和信任三角理论,我们假设了同行的欺诈和惩罚如何影响欺诈佣金和检测的四个传递渠道。基于2008年至2018年的中国上市公司,我们首先用社区检测算法构建和检测互锁的社交网络社区,然后用具有部分可观察性的二元概率模型检验假设。我们的研究结果表明,在社交网络社区中存在同伴隐藏和暗示效应。同行隐瞒效应降低了在实施欺诈时被发现的可能性,对于那些欺诈同行越来越多、越来越近的人来说。同伴暗示效应增加了那些受到惩罚的同伴越来越多、越来越近的人在实施欺诈时被发现的可能性。没有证据支持同伴传染和替代惩罚效应。因此,可以更好地了解社区内公司欺诈委员会和检测的传播机制,以预防和检测公司欺诈。此外,利益相关者和监管机构应意识到社交网络社区中的越轨亚文化和社交距离。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.20
自引率
3.40%
发文量
41
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