Chad Albrecht

Current Trends in Fraud and its Detection

ABSTRACT This article discusses the basic nature of fraud, including the major accounting scandals of the last decade. The article also discusses the role of auditors and if auditors should be held liable for not detecting financial statement fraud. The article examines recent standards, rules, and acts put in place after the major frauds of the 1990s and early 2000s, including Sarbanes-Oxley, new rules by the NYSE and NASDAQ, and SAS 92. Finally, the article discusses whether these new standards, rules, and acts will have an impact to deter financial statement frauds from occurring in the future.

Getting to grips with stress in the workplace

Purpose – This paper aims to describes the causes of stress, how it is manifested in the workplace and strategies for reducing it.Design/methodology/approach – Explains what stress is, how to recognize it and how to incorporate programs in order to reduce its negative impact.Findings – Reveals that the main areas that influence the level of chronic stress felt in the workplace are perception of job demands, individual differences and social demands. Although stress management is often considered important by businesses, action is rarely taken until the damage has been done.Practical implications – Advances the view that management needs to carefully and regularly monitor stress levels in the workplace, identify what is causing unnecessary stress and implement policies and procedures that will help to both manage and reduce stress.Social implications – Claims that, while social demands can be psychologically distressing, social support from friends, colleagues and family tends to benefit psychological well...

The relationship between South Korean chaebols and fraud

Purpose – In recent years, many of South Koreas most prominent organizations have been involved in large‐scale frauds. These frauds have had a devastating impact on South Korean society and resulted in unnecessary suffering and high levels of unemployment for the middle class. With the aim of understanding the causes of these scandals, this paper takes an in‐depth look at the chaebol organization.Design/methodology/approach – The paper takes a conceptual approach by first examining chaebols in greater detail. The paper then examines classical fraud theory, including the fraud triangle. The paper then examines chaebol organizations through the lens of the fraud triangle. By doing so, it is possible to understand why chaebols, in particular, are susceptible to fraud and corruption.Findings – The paper provides evidence to suggest that chaebol organizations have inherent fraud risks. In order to minimize these fraud risks, chaebol organizations must address these issues.Originality/value – This paper fulfil...

The role of cultural values on a firm's strategic human resource management development: a comparative case study of Spanish firms in China

This paper attempts to better understand the role of cultural values as a human resource contributor to a firms strategic development. Comparative case studies of two Spanish subsidiaries in China were made using on-site, in-depth qualitative research in both Spain and China. We then examine how this difference in management affects the firms overall strategic development and, hence, its performance. The results of the study suggest that cultural values, as a human resource contributor, do indeed affect a firms overall strategic development and, hence, the firms resulting success or failure. Throughout the paper, the management by values (MBV) framework is used as a lens to further examine and better understand this process.

Productivity and Prestige in Business Ethics Research A Report and Commentary on the State of the Field

This article provides a report and commentary on productivity and prestige in business ethics research. Based on a survey that was administered to 320 business ethics scholars worldwide, the authors report a ranking of 15 business schools that are perceived to be leaders in the field of business ethics. Based on these same survey results, the authors investigate which factors may have the strongest relationship to individual publication productivity and perceptions of institutional prestige within business ethics research. The results provide several surprising findings that suggest the business ethics field may be anomalous in academe in terms of the emergence of productivity and prestige.

China’s special economic zones: an analysis of policy to reduce regional disparities

Abstract There is no doubt that major regional disparities exist within China. The gap between its eastern coastal regions compared with the central and western regions has only grown wider over time. China’s special economic zones (SEZs) are defined as small geographical areas that allow the integration of free-market principles to attract additional foreign investment. However, the creation and success of SEZs has led to prosperity in the coastal regions of China, creating additional economic disparity between regions. This paper posits that one solution to reduce regional disparities is to extend the influence of the SEZs, or even set up new ones in different areas of the country, to spur investment and close the economic gaps.

Ezubao: a Chinese Ponzi scheme with a twist

Purpose The paper aims to report on the single largest peer-to-peer lending scandal in the history of China. The authors provide details on how the case was perpetrated. The authors also provide details as to how investors were fraudulently manipulated in the scam. Finally, the authors provide updates on recent regulation in China in the peer-to-peer lending industry. Design/methodology/approach This is a theoretical paper that provides a better understanding of both Ponzi schemes and fraudulent practices in the peer-to-peer industry. Findings While the Ponzi scheme has been around for many years, fraud perpetrators continue to find new ways to use the scheme to manipulate and take advantage of investors. The case of Ezubao provides important insight for both regulators, academics, investors and financial advisors. Originality/value Ezubao, a start-up in an industry with little to no regulation, provides a textbook example of common fraud symptoms (or red flags). The deception was enacted through Ezubao’s bold advertising scheme and falsified appearance of success and government support. This was enough to brilliantly deceive over 900,000 susceptible investors. While Ezubao was one of the first peer-to-peer lending scandals to be uncovered, it certainly will not be the last.

To sit at the table, you have to know the language: important financial metrics for HR directors

Purpose The main thrust behind strategic human resources (HR) includes strengthening the impact of HR on the organization. In other words, strategic HR attempts to place the HR department on equal footing with other functional areas of business. HR professionals who understand both operational indicators and their decisions on various financial metrics have greater focus and clarity when making decisions. HR professionals with such knowledge are also more likely to be viewed favorably by their counterparts in other departments and have a greater voice in the executive suite and boardroom. Design/methodology/approach Interviews with board of director(s). Findings There has been a significant shift in the role of HR over the past several decades. The HR department has evolved from a role focused primarily on dealing with administrative issues, litigation and unions, to a department that drives strategy and adds value throughout the company. To continue this transition, HR professionals should have a solid knowledge of critical financial information, including financial and operational metrics and ratios. By combining this information with a strategic mindset, HR professionals are better prepared to add value to the firm, and they participate more fully with other members of management in determining the strategic direction of a firm. Originality/value A competent, strategically minded HR professional who understands not only people-related issues but also financial issues can “elevate strategic discussions” in the executive suite and boardroom. Just as financial statements serve to direct attention to operational issues and to spur responsive management decisions among line managers, so too can financial statements direct the attention of HR professionals to line items specifically impacted by HR policies and processes. When HR professionals consider the impact of their decisions on the financial statements and financial metrics, they become key players in helping the firm achieve organizational goals.

Strategic revenue analysis

Purpose Strategic revenue analysis is something that the authors have used in our consulting and classroom teaching for many years, yet has never been formally developed nor written about by researchers and practitioners. Design/methodology/approach The authors outline the seven-step process behind strategic revenue analysis and provide numerous examples. Findings Organizations that discipline themselves and perform strategic revenue analysis almost always grow quicker than the competition, focus on high margin products and develop other types of discipline that make them more successful. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.