Determinants of Bank Employees ' Engagement in Asset Misappropriation in Tanzania

Abstract

This study examines the determinants of employees ' engagement in asset misappropriation within the Tanzanian banking sector, drawing on the Fraud Triangle theory's elements of pressure, opportunity, and rationalization. A sample of 148 bank employees was analysed using a linear regression model. The findings revealed that opportunity emerged as the only significant predictor of asset misappropriation, indicating that when opportunities are perceived to be available, the likelihood of fraudulent behaviour increases and vice versa. However, neither pressure nor rationalization proved to have a significant influence. This research's findings have profound implications for banking institutions and regulatory bodies, highlighting the need for strengthened internal controls and vigilant surveillance mechanisms to constrict perceived opportunities for fraud. Moreover, this study enriches the existing literature by underscoring the context-dependent impact of the Fraud Triangle's components on asset misappropriation, particularly within the Tanzanian banking sector. It emphasizes the need for further research into the complexities of fraudulent behaviour and the development of effective strategies to mitigate it, across different sectors and geographic contexts.