BOARD CHARACTERISTICS AND THE LIKELIHOOD OF FINANCIAL STATEMENT FRAUD

Muhammed Lawal Subair, Ramat Titlayo Salman, Ayodeji Fatai Abolarin, Abdulrasheed Taiwo Abdullahi and Akeem Sisofa Othman ()
Additional contact information
Akeem Sisofa Othman: Kwara State Polytechnic, Nigeria

Copernican Journal of Finance & Accounting, 2020, vol. 9, issue 1, 57-76

Abstract: The study examines the effect of board characteristics on financial statement fraud likelihood of quoted manufacturing firms in Nigeria. The scope of the study covers board attributes such as board independence, board expertise and board diligence; and the beneish M-score was used as the measure of fraud likelihood. This study utilized a quantitative research design. The sample covered 39 manufacturing companies in the Nigerian Stock Exchange (NSE) as at 2019. Secondary data was utilized for this study and the data were extracted from the annual reports of corporate organizations for the period 2013-2019 financial years. The binary logit regression was employed as the method of data analysis in the study. The findings reveal that the odd ratio of board independence, board expertise and board diligence negatively and significantly reduce the log odds of financial statement fraud in manufacturing firms in Nigeria. The study concludes that there is a need for boards to be more effective in their monitoring roles to reduce the occurrence of fraud.

Keywords: board independence; expertise; diligence; financial fraud; likelihood (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://apcz.umk.pl/czasopisma/index.php/CJFA/article/view/CJFA.2020.003/26206 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpn:umkcjf:v:9:y:2020:i:1:p:57-76

Access Statistics for this article

Copernican Journal of Finance & Accounting is currently edited by Leszek Dziawgo

More articles in Copernican Journal of Finance & Accounting from Uniwersytet Mikolaja Kopernika
Bibliographic data for series maintained by Miroslawa Buczynska ().