National culture and fraud risk: exploratory evidence

Purpose – The purpose of this paper is to test the association between national culture dimensions and exposure to fraud with a view to drawing implications for understanding fraud risk. Design/methodology/approach –The study is based on a sample of 66 countries. Regression analysis is conducted using Hofstede’s national culture dimensions as independent variables and fraud risk as a dependent variable. Transparency International’s corruption index was used as a proxy for fraud risk. Findings – Results suggest high fraud risk exposure in countries with high power distance and those having limited long-term orientations. Research limitations/implications -The study informs deeper understanding of fraud risk through analysis of fraud risk in a culturally relative sense. Originality/Value -This is the first study (known to the author) to draw the implications of national culture for understanding fraud risk.