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Identification of a Fraudulent Organizational Culture in Enterprises Listed in Warsaw Stock Exchange

Author

Listed:
  • Joanna Wyrobek
  • Lukasz Poplawski
  • Marcin Surowka

Abstract

Purpose: This publication aims to verify the research hypothesis that it is possible to create a model predicting a fraudulent organizational culture in an enterprise. Design/Methodology/Approach: We estimated a logit model that would warn against fraud by employees, fraudulent financial reporting, and direct manipulation of the financial statements. The model would only caution about the possibility of the fraud risk and force a human analysis of such an entity. Findings: We searched for scams in the press and police investigations that ended with charges against directors, managers, and employees of enterprises where there was financial damage on a large scale. We were mainly looking for intentional and deliberate frauds. Practtical Implications: We created a model that warns which companies may have an unfair corporate culture for Polish companies listed on the WSE. Originality/Value: An element of the novelty in the publication is an attempt of a comprehensive approach to fraud, i.e., going beyond manipulating the financial result or penalties by the commission supervising the stock exchanges and financial markets.It is also one of the first fraud detection models which was designed for companies listed on the Warsaw Stock Exchange.

Suggested Citation

  • Joanna Wyrobek & Lukasz Poplawski & Marcin Surowka, 2020. "Identification of a Fraudulent Organizational Culture in Enterprises Listed in Warsaw Stock Exchange," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 622-637.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:special2:p:622-637
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    References listed on IDEAS

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    More about this item

    Keywords

    Fraudulent organizational culture; Warsaw Stock Exchange; fraud detection; big data.;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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