Does Type of Fraudulent Act Have an Impact on Whistleblowing Intention?

Caesar Marga Putri


The purpose of this research is examining empirically the impact of two types of fraudulent act on individual’s reporting intention under reward model. This research applies the Reinforcement theory in designing whistleblowing policies. In this context we use reward system in encouraging disclosure of fraudulent act. This study is designed using experiment method 2x2 between subjects with 86 participants from private universities. Sarbanes-Oxley Act of 2002 requires that every public company must establish anonymous channel regarding disclosure of fraudulent act. However under reward system it may become different prediction that non-anonymous channel is preferable than the other one. Using two types of fraudulent act, this research investigate whether the type does not affect individual’s intention for disclosing fraud in choosing the reporting channel because reward is provided. The result shows that the interaction between type of fraudulent act and type of channel could encourage individual’s intention to blow the whistle. However, individual prefer to report misappropriation of asset through anonymous channel than non-anonymous even though reward is provided.


Whistleblowing; materiality


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