Boards’ and Firms’ Characteristics: The case for Fraudulent Financial Reporting in Malaysia
The purpose of this paper is to provide valuable insights into the characteristics of fraudulent financial reporting in the period pre- and post-fraud. The objective of the study is to examine signals or red flags that exist among fraud firms such as their audit committee size, audit committee indep...
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| Format: | Conference or Workshop Item |
| Language: | English English English |
| Published: |
2012
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| Online Access: | http://irep.iium.edu.my/25168/ http://irep.iium.edu.my/25168/1/BAFA%2520Conference%25202012%2520-%2520outline%2520schedule.pdf http://irep.iium.edu.my/25168/2/BAFA%2520Conference%25202012%2520-%2520presentation%2520schedule.pdf http://irep.iium.edu.my/25168/9/sherliza_FFR_P2_Dec_14.pdf |
| Summary: | The purpose of this paper is to provide valuable insights into the characteristics of fraudulent financial reporting in the period pre- and post-fraud. The objective of the study is to examine signals or red flags that exist among fraud firms such as their audit committee size, audit committee independence, board’s size, independent directors, block holders, cash flows and long term debts. Companies of fraud firms were identified from the Securities Commission enforcement actions from year 2000 until 2008. Findings provide practical implications to accounting regulators and practitioners since it revealed boards’ size, block holders and operating cash flow have significant relationship with fraudulent financial reporting. The study concludes that firms that spend more on operating activities, that have larger board’s size and block holders, are less likely to be involved in fraudulent financial reporting.
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