THE ROLE OF NATIONAL CULTURE IN THE EMERGENCE OF FINANCIAL STATEMENT FRAUD: COMPARISON OF JAPANESE AND BRITISH CULTURE IN THE CASES OF OLYMPUS AND TESCO

Abstract

This study has the purpose to determine the role of national culture in the emergence of financial statement fraud. The object of this study is the case of the Olympus Corporation and Tesco Plc financial statement fraud and the national culture of Japan and the U.K. This research was conducted using qualitative method by using Miles and Huberman data analysis technique in order to obtain a clear, detailed, and in-depth description of the problem under research. Data collection methods used was through document study. Using Hofstede six cultural dimensions to identify each national cultures, and three fraud triangle elements to identify the causal factors of each case, the result of this research shows that, although the contrast cultures that Japan and the UK have, each national culture still have a role in the emergence of financial statement fraud in Olympus and Tesco case. To be specific, Japanese culture has a very strong role in the emergence of Olympus financial statement fraud but not for the case of Tesco Plc which cultures has not strong influence in the emergence of the case.