Corporate fraud culture: Re‐examining the corporate governance and performance relation

Tan, David; Chapple, Larelle; Walsh, Kathleen

doi:10.1111/acfi.12156

Cited by 27 publications

(21 citation statements)

References 60 publications

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“…This is because they are in a unique position to override controls that otherwise appear to be operating effectively (ASA 240, 2016;Kemp, 2016). Previous research indicates that fraudulent financial reporting scandals are frequently preceded by entrenched lenient attitudes by management to fraudulent behaviour (Leung and Cooper, 2003;Tan et al, 2015).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…To illustrate, some researchers have focused on misappropriation of assets (Coram et al, 2008;Chapple et al, 2009;Tan et al, 2015), while another examines nonspecific fraudulent financial reporting (Sharma, 2004). Previous Australian studies have tended to identify one category of fraudulent financial reporting or cover general financial reporting due to a lack of data.…”

Section: Introductionmentioning

confidence: 99%

“…Australian studies have relied on relatively small sample sizes in comparison with our current study using self-reporting data in the KPMG Fraud Survey (Coram et al, 2008;Tan et al, 2015;Capezio and Mavisakalyan, 2016) and data on companies that are subject to regulatory investigation, class actions and media releases (Sharma, 2004;Chapple et al, 2014;Yuan and Zhang, 2016).…”

Section: Introductionmentioning

confidence: 99%

“…Previous Australian studies have tended to identify one category of fraudulent financial reporting or cover general financial reporting due to a lack of data. To illustrate, some researchers have focused on misappropriation of assets (Coram et al, 2008;Chapple et al, 2009;Tan et al, 2015), while another examines nonspecific fraudulent financial reporting (Sharma, 2004).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Chief financial officer demographic characteristics and fraudulent financial reporting in China

Sun

Kent

et al. 2017

Accounting & Finance

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We investigate whether management's cognitions, values and perceptions are associated with fraud for 18 863 firm-years for Chinese listed firms from 2000 to 2014. Demographic characteristics of the chief financial officer (CFO) are used as proxies for management's cognitions, values and perceptions. We find that fraudulent financial reporting is higher when CFOs are younger, male, and have lower education backgrounds. An analysis of inflated earnings, fictitious assets, material omissions and other material misstatements provide similar results, with the exception that CFOs with higher education levels are associated with more inflated earnings.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Chief financial officer demographic characteristics and fraudulent financial reporting in China

Sun

Kent

et al. 2017

Accounting & Finance

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“…These findings are not in line with the report of previous studies that government can prevent fraud (Chen et al, 2006;Mangala & Kumari, 2017;Eferakeya et al, 2016;Halbouni et al, 2016;Matoussi & Gharbi, 2011;Tan et al, 2017). It is, however, believed the implementation of GCG is a solution to reduce fraud in village funds since the management process involves social interaction between several stakeholders such as central, regional and village governments as well as the community.…”

Section: Source: Research Analysis Datamentioning

confidence: 55%

The Role of Good Village Governance Implementation Towards Reducing Fraud Potential and Ensuring Effective Government Performance

Wahyudin

Mukhibad

Nurkhin

et al. 2020

HSSR

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Purpose of the study: This research aimed to examine the effect of Good Village Governance (GVG), external supervision, and citizen participation on the fraud potential in village funds management and its consequent impact on village government performance. Methodology:The sample studied involved 60 respondents including village officials in Demak Regency, Central Java, Indonesia. The data was collected. We use Structural Equation Model (SEM) and use WarpPLS tools to examine causality tests among variables. Main Findings:The results showed the implementation of GVG did not have a significant effect on the fraud potential in fund management while external supervision and citizen participation have a negative and significant effect. Furthermore, the GVG implementation and citizen participation were found not to have a significant influence on village government performance while external supervision and fraud have a negative and significant effect. Moreover, fraud has a very strong influence and it is the most dominant determinant of village government performance, therefore, it should be handled with serious attention.Applications of this study: External supervision of village fund management is needed to reduce fraud and improve performance. Besides, the implementation of GVG can also support improved village government performance. Novelty/Originality of this study:This research builds a model and examines the GVG concept model that can be a solution to the problem of fraud and the low performance of local governments in Indonesia.

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The link between corporate governance and corporate financial misconduct. A review of archival studies and implications for future research

Velte

2021

Manag Rev Q

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In this article, we review recent archival research articles (98 studies) on the impact of corporate governance on restatements, enforcement activities and fraud as corporate financial misconduct. Applying an agency-theoretical view, we mainly differentiate between four levels of corporate governance (group, individual, firm, and institutional level). We find that financial restatements on the one hand and the group and individual level of corporate governance on the other hand are dominant in our literature review. Enforcement actions and fraud events as misconduct proxies, and the firm and institutional level of corporate governance are of lower relevance yet. The following review highlights that many studies on corporate governance find inconclusive results on firms’ financial misconduct. But there are indications that board expertise and especially gender diversity in the top management decreases firms’ financial misconduct. We know very little about the impact of non-shareholder stakeholders’ monitoring role on misconduct yet. In discussing potential future research, we emphasize the need for a more detailed analysis of misconduct proxies, recognition of moderator and especially mediator variables, especially in the interplay of the board of directors and external auditors.

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Corporate fraud culture: Re‐examining the corporate governance and performance relation

Cited by 27 publications

References 60 publications

Chief financial officer demographic characteristics and fraudulent financial reporting in China

Chief financial officer demographic characteristics and fraudulent financial reporting in China

The Role of Good Village Governance Implementation Towards Reducing Fraud Potential and Ensuring Effective Government Performance

The link between corporate governance and corporate financial misconduct. A review of archival studies and implications for future research

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