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Substance Abuse and Workplace Fraud: Evidence from Physicians

Author

Listed:
  • Melanie Millar

    (Baylor University)

  • Roger M. White

    (Arizona State University)

  • Xin Zheng

    (University of British Columbia)

Abstract

We examine the relation between worker substance abuse and workplace fraud in a sample of medical doctors. Relative to their peers, we observe that doctors engaging in substance abuse are between 50 and 100 times more likely to commit fraud in a given year. This result is consistent with research suggesting that substance abuse both creates financial pressures and impairs the functioning of cognitive self-regulatory mechanisms. Our results are robust in within-subject tests and between-subject tests, as well as in tests using instrumental variables that exploit exogenous variation in the state-level availability of opioids, a commonly abused substance.

Suggested Citation

  • Melanie Millar & Roger M. White & Xin Zheng, 2023. "Substance Abuse and Workplace Fraud: Evidence from Physicians," Journal of Business Ethics, Springer, vol. 183(2), pages 585-602, March.
    • Handle: RePEc:kap:jbuset:v:183:y:2023:i:2:d:10.1007_s10551-022-05065-6
    DOI: 10.1007/s10551-022-05065-6
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    More about this item

    Keywords

    Substance abuse; Fraud; Impulsivity; Delay discounting;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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