In non-accounting settings, research has examined the consequences of fraudulent acts. For
example, Grasmick and Kobayashi (2002) examine the threat of formal punishment, socially
imposed embarrassment, and self-imposed shame as deterrents for workplace rules violations. The
authors find that, in the United States and Japan, self-imposed shame is a stronger deterrent and
socially imposed embarrassment is not significant. Overall, the results suggest that the threat of
socially imposed embarrassment has no significant impact. We believe that the area of punishment
provides opportunities for further study and the results might impact resource allocation for antifraud
programs.