board characteristics and the likelihood of financial statement fraud
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Date
2020-06
Journal Title
Journal ISSN
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Publisher
Nicolaus Copernicus University, Torun, Poland.
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.
Description
Keywords
board independence, expertise, diligence, financial fraud, likelihood