Fraud, corruption and the paradox of control
2008 (English)In: The Southern Business & Economic Journal, ISSN 0743-779X, Vol. 31, no 3/4, 49-71 p.Article in journal (Refereed) Published
This paper utilizes a distinction between vertical and horizontal control to challenge the idea that a tight control system improves an organization's ability to counteract fraud and corruption. We draw on the management control, accounting and accountability literatures to characterize key dimensions of vertical control, with a vertical information flow in a formal organization structure, and horizontal control, based on lateral information exchange and empowerment. Using a case study of a U.S. high school undergoing change, we show how strong vertical control fosters fraud and corruption, rather than preventing and revealing such tendencies. We conclude with propositions concerning key mechanisms involved.
Place, publisher, year, edition, pages
2008. Vol. 31, no 3/4, 49-71 p.
Business / Economics - Business studies
Ekonomi - Företagsekonomi
Research subject Accounting and Control
IdentifiersURN: urn:nbn:se:ltu:diva-3398Local ID: 138785c0-9612-11de-8da0-000ea68e967bOAI: oai:DiVA.org:ltu-3398DiVA: diva2:976256
Godkänd; 2008; 20090831 (anders_n)2016-09-292016-09-29Bibliographically approved