Title: Identification of the internal reasons of public sector bank fraud in India by using confirmatory factor analysis

Authors: Souvik Kumar Ghosh; Anupam De

Addresses: Department of Management Studies, National Institute of Technology Durgapur, West Bengal – 713209, India ' Department of Management Studies, National Institute of Technology Durgapur, West Bengal – 713209, India

Abstract: In the last three decades, Indian Public Sector Banks has witnessed exponential growth in fraud and fraudulent transactions which are classified into two categories, i.e., internal and external. The current study is to find out the internal reasons through confirmatory factor analysis. Initially, a good number of officers up to Deputy General Manager from various public sector banks were interviewed to identify 23 internal reasons of fraud. Thereafter, based on the information collected through interviews a structured 5 scale questionnaire was prepared to collect responses from different public sector bank employees. Applying Factor Analysis and based on certain criteria, 3 variables were excluded to get 20 variables which are grouped in 4 categories, i.e., factors. Thereafter validity of the constructs through model fit is checked using Confirmatory Factor Analysis. Lastly, the most important variable in each factor was identified to focus on the impact areas to curb public sector banks fraud.

Keywords: internal reasons of fraud; public sector bank; factor analysis; confirmatory factor analysis; multiple regression; public sector banks fraud in India; mitigation of fraud risk.

DOI: 10.1504/IJEBR.2020.111104

International Journal of Economics and Business Research, 2020 Vol.20 No.4, pp.442 - 466

Received: 05 Dec 2019
Accepted: 25 Feb 2020

Published online: 21 Oct 2020 *

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