Work

The Influence of Motivation, Lender Type, and Dark Triad Personality Characteristics on Loan Application Misrepresentations

Year: 2026

Type: article

Abstract: ABSTRACT This study reports the results of an experiment that examines borrowers’ propensity to misrepresent and misstate information in a hypothetical loan application. The study uses a 2 × 2 between-participants design where the manipulated variables are borrower motivation (selfish or altruistic) and lender type (a private lender or the federal government Paycheck Protection Program (PPP)). Participants’ dark triad characteristics were assessed and treated as a moderator. Participants were asked about their likelihood to misstate the company’s financial statements or misrepresent narrative information provided with their loan application. Participants reported a higher likelihood of misrepresenting narrative information on loan application under selfish (versus altruistic) motivation. They also reported higher likelihood of financial statement misstatement on loan applications to the government (versus private lender). This study sheds light on how the federal PPP may have influenced borrowers’ likelihood to misrepresent or misstate information on loan applications.

Source: Journal of Forensic Accounting Research

DOI: 10.2308/jfar-2023-010

Authors: Emily S. Keenan, Jennifer Sustersic Stevens, Aaron B. Wilson

Institution: Ohio University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: bronze

OpenAlex ID: W7150875309