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Research Article Open access CC BY 4.0

Corporate Governance and Corporate Fraud: An Examination of Interaction Effects in Nigeria

Temple Moses

Asian Journal of Advanced Research and Reports · pp. 1–11 · Published 14 Mar 2019

10.9734/ajarr/2019/v4i130098

Abstract

This research paper examined the relationship between corporate governance and the commission of corporate fraud among quoted companies in Nigeria. The research utilized a sample of eighteen (18) companies whose data were collected through content analyses on the basis of the availability of information from annual reports and other media reports. Data for the study were analyzed using a binary logit multiple regression analysis method. The findings of the study showed that there is a negative relationship between the independence of the board of directors and corporate fraud. The findings further show that there is a negative relationship between the commitment of the audit committee to their roles and corporate fraud. Finally, the findings show that there is a positive relationship between ownership structure and the phenomenon of corporate fraud in organizations. From the findings of the study, it is concluded that increasing the number of independent members in the board of directors will increase the ability of the board of directors to checkmate fraud commission. However, the ability of independence of board members to forestall corporate fraud is below the optimal level. It is also concluded that the commitment of the audit committee is an important deterrent of corporate fraud. Finally, increased concentration of ownership with only a few individuals will lead to increased fraud. Thus, it is recommended that the number of independent members in the board of directors be statutorily increased. Finally, it is recommended that the concentration of ownership in a few hands be discouraged.

Corporate governance corporate fraud interaction effects audit committee ownership structure.

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Cited by 11

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Johanes Deddy Hermawan -, Muhyarsyah - · International Journal For Multidisciplinary Research · 2023

Effect of Financial Reporting Fraud on the Performance of Firms in the Nigerian Exchange Group

Ifeoluwapo Adebimpe Oyewobi · Advances in Finance, Accounting, and Economics · 2022

Corporate governance and money laundering in Nigerian listed companies

John A. Olayiwola, Adeola.A. Olalere, Folorunsho M. Ajide · Journal of Economic Criminology · 2025

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