Eckert, AlexandraAlexandraEckertMeyer, MatthiasMatthiasMeyer2025-01-102025-01-102024-02-29Annual Conference for Management Accounting Research (ACMAR 2024)https://tore.tuhh.de/handle/11420/49809Fraud exists in many organizations and generates large financial losses worldwide. Davis and Pesch (2013) developed an agent-based model to investigate the empirically difficult-to-capture phenomenon of fraud and provide valuable managerial guidance on fraud dynamics and anti-fraud interventions. This study replicates and extends their original model to test their results' and associated recommendations' internal and external validity. Our results of the close replication show that we can reproduce most of their findings, indicating a high internal validity of their results. Our extension exchanges the original behavioral imitation concept, by implementing social-norm theory as an alternative mechanism. As a result of modifying this key component of the model, fraud dynamics are less volatile, and only some qualitative results regarding anti-fraud interventions remain valid. In practical terms, this suggests a greater level of organizational inertia regarding fraudulent behavior than what the original model proposed: good news concerning the risk of fraud spreading but bad news when it comes to the eradication of fraudulent behavior.enhttps://creativecommons.org/licenses/by-nc-sa/4.0/fraud in organizationssocial norm theoryABMmodel replicationmodel extensionSocial Sciences::360: Social Problems, Social ServicesSocial Sciences::302: Social InteractionNatural Sciences and Mathematics::519: Applied Mathematics, ProbabilitiesConference Presentationhttps://doi.org/10.15480/882.13567https://doi.org/10.15480/882.1356710.15480/882.1356710.15480/882.13567Robertson, ClaraClaraRobertsonMichalka, MagdalenaMagdalenaMichalkaPresentation