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Developing and Validating a Model for Identifying Banks’ Financial Misconduct Using a Meta-Synthesis Approach and Structural Equation Modeling
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Mohamadreza Bana1   , Omid Pourheidari *2 , Ahmad Khodamipour3 |
1- Department of Accounting, Faculty of Management & Economics, Shahid bahonar University of Kerman
2- Professor of Shahid bahonar University of Kerman, Kerman, Iran , opourheidari@uk.ac.ir
3- Professor of Shahid bahonar University of Kerman, Kerman, Iran |
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Abstract: (12 Views) |
Financial misconduct in banks is a critical issue that can undermine public trust in the banking system, weaken the soundness of financial intermediation, and threaten stability in money and financial markets. Despite its importance, the research literature has paid limited attention to providing an integrated and empirically validated framework for identifying banks’ financial misconduct. Accordingly, this study aims to develop and validate a model for determining banks’ financial misconduct using a meta-synthesis approach and structural equation modeling (SEM). The study is developmental in purpose and employs a mixed-methods design (qualitative–quantitative). In the qualitative phase, a meta-synthesis of prior studies was conducted to identify key indicators of banks’ financial misconduct, resulting in the extraction of 27 indicators through a systematic review of the literature. Next, to screen the indicators and achieve expert consensus, interviews were conducted with domain experts and a fuzzy Delphi procedure was applied, through which 21 indicators were confirmed. In the quantitative phase, the confirmed indicators were operationalized in a questionnaire ;201 completed questionnaires were collected and analyzed using confirmatory factor analysis and SEM. The results showed that, among the 21 examined indicators, 15 indicators were validated as the final determinants of banks’ financial misconduct: bank size, financial leverage, capital adequacy, market-to-book ratio, non-performing loans, asset growth, institutional ownership, board independence, board gender composition, board financial expertise, audit firm size, auditor tenure, auditor expertise, CEO optimism, and CEO short-termism. Overall, the proposed model can serve as a basis for identifying, assessing, and monitoring financial misconduct in banks and provides a practical tool for regulators, investors, and bank executives
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Article number: 16 |
| Keywords: Financial health, Behavioral factors, financial misconduct, Bank |
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Full-Text [PDF 1114 kb]
(3 Downloads)
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Article type: Research |
Subject:
Special
Received: 2025/12/3 | Accepted: 2026/03/10 | Published: 2026/08/23
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