Do Personal Beliefs and Values Affect an Individual's Fraud Tolerance? Evidence from the World Values Survey

We introduce the concept of fraud tolerance, validate the conceptualization using prior studies in economics and criminology as well as our own independent tests, and explore the relationship of fraud tolerance with numerous cultural attributes using data from the World Values Survey. Applying partial least squares path modeling, we find that people with stronger self-enhancing (self-transcending) values exhibit higher (lower) fraud tolerance. Further, respondents who believe in the importance of hard work exhibit lower fraud tolerance, and such beliefs mediate the relationship between locus of control and fraud tolerance. Finally, we find that people prone to traditional gender stereotypes demonstrate higher fraud tolerance and document subtle differences in the influence of these cultural attributes across age, religiosity, and gender groups. Our study contributes to research on corporate governance, ethics, and the antecedents of work-place dishonesty.

Automated summary

This study introduces the concept of fraud tolerance and validates its relationship with cultural attributes through data analysis. It finds that values and beliefs in hard work can affect fraud tolerance, and cultural attributes have diverse influences across different groups.