Understanding and controlling financial fraud in the drug industry
No Thumbnail Available
Date
2020-01-31
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Financial Crime
Abstract
Purpose – This study aims to assess the fraud cases, factors and control measures of financial fraud in the
drug industry with evidence from Ghana. Drug industry and pharmaceutical are the same, and they are used
interchangeably in this study.
Design/methodology/approach – Data from questionnaires were collected from 412 manufacturers,
wholesalers and retailers of the drug industry. Data were presented and analysed with descriptive statistics
and probit regression.
Findings – Results show that, in general, stealing of drugs, stealing of cash, usage of fake cheques, falsified
documents and dubious accounting practices are some of the fraud cases in the industry. Factors such as
gender, educational level, religious beliefs, regulatory 7measures, pressure, rationalization and opportunities
influence financial fraud in the drug industry. Control measures such as thorough assessment of products,
regular review of fraud policies, installation of fraud-detection software and effective internal systems could
reduce the menace.
Research limitations/implications – The paper addresses a number of theoretical and systemic issues
on financial fraud in the drug industry but with limited specific quantitative data or calculations as well as
limited sample size. Further studies could offer a more quantitative approach with a larger sample size in an
attempt, for instance, to estimate the financial costs of financial fraud to the drug industry.
Practical implications – This paper openly tackles various attempted frauds and financial malfeasances
from stakeholder perspectives in the drug industry. Practical measures have been given to tackle the
consequences of the menace.
Originality/value – This paper is geared towards providing valuable learning points for stakeholders in
the drug industry to handle daily operations to assist them in detecting and preventing similar occurrence of
financial fraud.
Description
Research Article
Keywords
Pharmacy, Ghana, Drug, Factors, Control measures, Financial fraud