7-days of FREE Audio papers, translation & more with Prime
7-days of FREE Prime access
7-days of FREE Audio papers, translation & more with Prime
7-days of FREE Prime access
https://doi.org/10.1007/978-981-10-6926-0_10
Copy DOIPublication Date: Dec 7, 2017 |
Citations: 4 |
This research investigates whether the board member diversity: gender, ethnic, and roles diversity, are associated with the likelihood of financial statement fraud. The sample of this study includes all fraud firms which has been disclosed by the Securities Commission Malaysia matched with an equal number of non-fraud firm. A total of 124 firms are included in this study, consisting 62 firms that engaged in financial statement fraud and other 62 of non-fraud firms. Using the logistic regression analysis, the findings show that financial statement fraud is positively associated with less gender diversity and roles diversity. In addition, there is a significant relationship between governance characteristics (board size, board meeting, and chairman dual role) and financial statement fraud. This study concludes that firms engaging with fraud have more frequent board meeting, is dominated by Chinese ethnicity, have high proportion of independent directors and the chairman and Chief Executives Officer (CEO) or Managing Director are the same person/director. Overall, this research contributes new evidence on the factors that explain the likelihood of financial statement fraud.
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.