The effects of psychological capital on accountants’ fraud reporting intentions

This study examines whether and how psychological capital (PsyCap)—a positive psychological resource comprising hope, efficacy, resilience, and optimism—shapes professional accountants' intentions to internally report fraud. Based on psychology resource theory, we examine whether PsyCap influences accountants' reporting intentions indirectly through three critical fraud-related judgements: the perceived seriousness of the misconduct, the felt personal responsibility to report, and the expected personal costs of doing so. We also propose that these effects will be conditional on the outcome of a previous whistleblowing experience. Using a quasi-experimental design, 177 professional accountants responded to a scenario involving the discovery of fraud within their firm. Our findings reveal that PsyCap indirectly shapes participants’ internal reporting intentions primarily through personal responsibility judgements. By highlighting the role of PsyCap, this research offers fresh insights for organizations, auditors, and scholars seeking to better understand whistleblowing, strengthen ethical reporting cultures, and reduce the organizational costs of fraud.