FACTORS STIMULATING CORPORATE CRIME IN MALAYSIA
FACTORS STIMULATING CORPORATE CRIME IN MALAYSIA

Summary/Abstract: Building on the perception of both existing and potential investors in one of the largest cities in East Malaysia – Kuching, this study aims to identify the factors that appear to stimulate corporate criminal activity in organizations. A survey was carried out by distributing questionnaires to both types of investors selected on a random basis. The findings reveal that corporate criminal activities are mostly due to inadequate cash security practices and inadequate supervision as well as a lack of internal auditing. To minimize the effects of corporate crime on investors and organizations, managers should pay extra attention to these factors. On the other hand, future research within the context of corporate crime may consider the extent to which organizational crime can affect the shareholder value creation of organizations.

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