Abstract

To date, much of the current research has focused on examining the direct relationships between the components of the fraud triangle theory and fraud intention. However, limited empirical studies have explored the mediating effects of rationalization and opportunity. Therefore, the main aim of this study was to examine the mediating role of rationalization and opportunity on the direct relationship between pressure and fraud intention, as well as the relationship between pressure and opportunity. A sample of 166 managers participated in the study, and partial least squares structural equation modelling was used to test the proposed model and hypotheses. Results showed that pressure was positively related to both rationalization and fraud intention. Moreover, the relationship between pressure and fraud intention was found to be partially mediated by both rationalization and opportunity. Similarly, rationalization was also found to partially mediate the relationship between pressure and opportunity. These findings suggest that pressure can increase fraud intention directly, as well as indirectly through rationalization and opportunity. This study contributes to the current literature by shedding light on the interplay among the three key components of the fraud triangle theory and their effects on fraud intention. The study provides valuable insights for relevant stakeholders, both theoretically and practically.