Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman

The primary objective of this study is to investigate whether directors' shareholdings and executive equity-based compensation influence the occurrence of fraudulent financial reporting in Malaysia. This study employed a sample of 180 listed firm-year observations of Malaysian listed companies...

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Bibliographic Details
Main Author:	Mohd Aliman, Noralizah
Format:	Thesis
Language:	English
Published:	2013
Online Access:	http://ir.uitm.edu.my/id/eprint/17183/ http://ir.uitm.edu.my/id/eprint/17183/1/TM_NORALIZAH%20MOHD%20ALlMAN%20AC%2013_5.pdf

id	uitm-17183
recordtype	eprints
spelling	uitm-171832018-10-30T07:23:52Z http://ir.uitm.edu.my/id/eprint/17183/ Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman Mohd Aliman, Noralizah The primary objective of this study is to investigate whether directors' shareholdings and executive equity-based compensation influence the occurrence of fraudulent financial reporting in Malaysia. This study employed a sample of 180 listed firm-year observations of Malaysian listed companies over the period 2003 to 2010. Specifically, the sample consists of 90 fraud firms, matched with 90 non-fraud firms. The sample of fraud firms was identified based on the announcement of fraud occurrence and breach of the listing requirement of Securities Commission and Bursa Malaysia. Employing the logistics regression approach, the findings show that directors' shareholdings have negative association with the occurrence of fraudulent financial reporting which indicate that the higher ownership level reduces the tendency of fraud to occur. The result also shows that the outstanding stock option available has positive association with fraud occurrence, suggesting that executive motivate to commit fraud to gain equity-based compensation. These results were robust even after controlling for firms specific factors, industry and year effects, and various specification tests. This study however, does not address other mechanisms of governance. 2013 Thesis NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/17183/1/TM_NORALIZAH%20MOHD%20ALlMAN%20AC%2013_5.pdf Mohd Aliman, Noralizah (2013) Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman. Masters thesis, Universiti Teknologi MARA.
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
description	The primary objective of this study is to investigate whether directors' shareholdings and executive equity-based compensation influence the occurrence of fraudulent financial reporting in Malaysia. This study employed a sample of 180 listed firm-year observations of Malaysian listed companies over the period 2003 to 2010. Specifically, the sample consists of 90 fraud firms, matched with 90 non-fraud firms. The sample of fraud firms was identified based on the announcement of fraud occurrence and breach of the listing requirement of Securities Commission and Bursa Malaysia. Employing the logistics regression approach, the findings show that directors' shareholdings have negative association with the occurrence of fraudulent financial reporting which indicate that the higher ownership level reduces the tendency of fraud to occur. The result also shows that the outstanding stock option available has positive association with fraud occurrence, suggesting that executive motivate to commit fraud to gain equity-based compensation. These results were robust even after controlling for firms specific factors, industry and year effects, and various specification tests. This study however, does not address other mechanisms of governance.
format	Thesis
author	Mohd Aliman, Noralizah
spellingShingle	Mohd Aliman, Noralizah Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
author_facet	Mohd Aliman, Noralizah
author_sort	Mohd Aliman, Noralizah
title	Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
title_short	Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
title_full	Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
title_fullStr	Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
title_full_unstemmed	Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
title_sort	directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: malaysia case / noralizah mohd aliman
publishDate	2013
url	http://ir.uitm.edu.my/id/eprint/17183/ http://ir.uitm.edu.my/id/eprint/17183/1/TM_NORALIZAH%20MOHD%20ALlMAN%20AC%2013_5.pdf
first_indexed	2023-09-18T22:57:44Z
last_indexed	2023-09-18T22:57:44Z
_version_	1777417966682374144

Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman

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