Fraud and its causes: Investigating performance-based payment on misreporting by considering social orientation

Document Type : Original Article

Author

Masters Student in Accounting, Shahid Beheshti University, Tehran, Iran

Abstract

The purpose of this research is to investigate the impact of performance-based payment on reducing the amount of fraud in non-profit organizations. In this research, we examine the motives of cheating; Then we study the performance-based payment and its impact on the report prepared by organizations non-profit organizations, especially non-profit organizations. We also examine fraudulent financial reporting, which is defined as the deliberate omission or distortion of information by companies in order to hide the actual performance. The present study, focusing more on one of the environmental aspects of fraud, i.e. the effect of performance-based payment on misreporting, has investigated the performance of non-profit companies. The research method used is a library approach that has been carried out by reviewing the existing literature of library studies in the relevant field. In this regard, we have examined previous researches and the results show that performance-based payment in non-profit organizations reduces fraud and misreporting. The keywords were selected based on the most searched words in the articles.

Keywords

Main Subjects


Achim Monica Violeta., Borlea Sorin Nicolae., & Safta Ioana-Lavinia. (2020). Manipulation of financial statements through the use of creative accounting. Case of Romanian companies.
Bart Dierynck., & Victor van Pelt. (2021). The sorting benefits of discretionary adjustment to performance-based pay. Management Accounting Research, 52.
Basu Sudipta., DeVides Zhanel., Harris Erica. (2021). Funding Implications of Normal and Excessive Profitability in the Nonprofit Sector.
Collin Raymond., Daniele Nosenzo., & Johannes Abeler. (2019). Preferences for Truth-telling. Econometrica, 87(4).
Dimitriu Otilia., & Voineaa Maria-Mădălina. (2014). Emerging Markets Queries in Finance and Business Manipulating user behavior through accounting information. Procedia Economics and Finance.
Isabella Grabner., & Melissa A. Martin. (2020). The effect of horizontal pay dispersion on the effectiveness of performance-based incentives. Accounting, Organizations and Society.
Inmaculada Sirvent., Joe Zhu., Jos ´ e L. Ruiz., Nuria Ramon., & Wade D. Cook. (2018). DEA-based benchmarking for performance evaluation in pay-for-performance incentive plans.
Jin-Sung Rha., & So-Jin Yu. (2021). Research Trends in Accounting Fraud Using Network Analysis.
Mohammadi Moghadam, E., Moeinadin, M., & Heyrani, F. (2018). Identify and rank the factors affecting the risk of fraud or criminal acts by accounting using the fraud triangle theory. Journal of Management Accounting and Auditing Knowledge, 7(25), 123-138. (in Persian).
Rezanezhad, T., Abasi, T., & Monavarian, A. (2016). Identifying and Explaining the Obstacles of Performance-Based Payments in Public Organizations. Journal of Research in Human Resources Management, 8(3), 109-133. (in Persian).