BOARD CHARACTERISTICS AND FINANCIAL STATEMENTS FRAUD IN SELECTED QUOTED MANUFACTURING FIRMS IN NIGERIA

Authors

  • UMANAH Samuel Department of Accounting, Igbinedion University, Okada, Nigeria.
  • JOSIAH Mary, Ph.D Department of Accounting, Igbinedion University, Okada, Nigeria.
  • BOSUN-FAKUNLE, Yemisi F. Ph.D. Department of Accounting, Igbinedion University, Okada, Nigeria.

Abstract

The main objective of this study is to investigate the relationship between board characteristics and financial statement fraud in selected manufacturing companies in Nigeria.  The study utilized a sample of seventy five (75) companies from the universe of companies quoted on the Nigerian Exchange Group (NGX). The data was a combined property of time series and cross-sectional covering the period 2016-2022, with six hundred (600) company-year observations. The study utilized descriptive statistics, correlation analysis, factor analysis, pooled binary logistic regression analysis and panel binary logistic regression analysis with the aid of Statistical Package for Social Sciences (SPSS), strata 13 and E-view 9.0. The result of the study reveals that board composition has the likelihood to increase financial statement fraud.  The result shows that the size of the board of the selected sample companies has the tendency to increase financial statement fraud, even though the extent is not statistically significant. The relationship between female gender composition and financial statement fraud was positive though statistically insignificant at the 5% level. It shows that the presence of female board members is not likely to reduce financial statement frauds of the sampled companies. Among others, we recommend the inclusion of more external independent directors on the board. We also advocated for female gender representation on the corporate board.

Keyboards:      Financial Statement Fraud, Board Composition, Board Of Directors, Board Size And Board Female Gender

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Published

15-10-2023

Issue

Vol. 1 No. 1 (2023)

Section

Articles

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