The Role of Social Psychological Factors in Fraudulent Financial Reporting

Document Type : Original Article

Authors
Alireza Abedinpour 1
Asgar Pakmaram 2
Rasool Abdi 3
Afshin Nokhbe Fallah 4
1 PhD student of accounting, Bonab branch, Islamic Azad University, Bonab, Iran .
2 Assistant Prof., Faculty of Literature and Humanities, Islamic Azad University Bonab Branch, Bonab, Iran.
3 Associate Professor of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran .
4 Associate Professor of Accounting, Parand Branch, Islamic Azad University, Parand, Iran .
10.22034/jmaak.2025.77862.4355
Abstract
Abstract: Providing fraudulent financial reports with the aim of deceiving and misleading investors and the market is also an unethical and criminal act with the aim of better showing the financial status of the company in the short term, which is considered very risky for the manager. However, there are several evidences in the literature that show that different people have different views on risk, which can prevent people from committing crimes. In this regard, the current research has investigated the role of social psychology in profit management behavior by predicting causal relationships between the constructs of social exchange constructs, social judgment, social memory, social perception, social roles and social decision-making, and fraudulent reporting. The statistical population of this research is high-level, middle-level managers and financial managers of the investigated companies, and a standard questionnaire was used to collect data. After conducting the reliability and validity tests of the sample data, related analyzes were done based on the structural modeling approach. The research results showed that social memory structures and rational decision-making have a significant effect on fraudulent reporting.
Keywords
Social psychology constructs
earnings management behavior
fraudulent reporting
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