<![CDATA[This study examines the effects of behavioral capability and internal control weaknesses on asset misappropriation, while investigating the moderating role of the Fraud Control Environment. Drawing upon Attribution Theory and the Fraud Diamond Theory, the study argues that individuals with higher behavioral capability and organizations with weaker internal controls are more likely to experience asset misappropriation. Furthermore, a well-established Fraud Control Environment is expected to strengthen the relationships between these determinants and asset misappropriation by shaping employees' behavioral responses toward fraud prevention mechanisms. The research employs a quantitative explanatory approach using primary data collected through questionnaires administered to employees involved in financial management, asset administration, and internal control activities within public sector organizations. The proposed model is analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The findings are expected to demonstrate that behavioral capability and internal control weaknesses positively influence asset misappropriation. In addition, the Fraud Control Environment is predicted to strengthen both relationships, indicating that fraud prevention policies and organizational control culture significantly influence employees' behavioral tendencies toward asset misuse. These findings contribute to behavioral accounting literature by integrating individual behavioral factors with organizational fraud control mechanisms in explaining asset misappropriation.]]>
Copyrights © 2026
