Do foreign investors deter corporate fraud? Evidence from China

Liang, Quanxi; Gao, Wenlian; Xie, Hongji

doi:10.1016/j.qref.2022.01.002

Cited by 9 publications

(1 citation statement)

References 59 publications

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“…It indicates that state ownership in the sample firms is more likely to make listed companies' internal control mechanisms less effective, which presents the opportunity for management to engage in accounting fraud. This result is congruent with recent studies (Haß et al , 2019; Zhang et al , 2022; Liang et al , 2022) that state ownership significantly contributes to agency problems. We argue that this situation happens because of corporate political connections (i.e.…”

Section: Results and Analysissupporting

confidence: 92%

Are female CFOs more ethical to the occurrences of financial reporting fraud? Theoretical and empirical evidence from cross-listed firms in the US

Maulidi

Shonhadji²,

Fachruzzaman³

et al. 2022

JFC

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Purpose The purpose of this study is to examine whether female chief financial officers (CFOs) are associated with the occurrences of financial reporting fraud. This study offers new theoretical and empirical evidence on whether firms with more female CFOs are more (less) likely to engage in financial reporting fraud. Design/methodology/approach This study is based on a sample of US-listed firms from 2011 to 2021. The authors speculate that female CFOs play a weaker role in the occurrences of financial reporting fraud. So, firms with a proportional number of female CFOs should be less likely to commit financial reporting fraud. Findings The data provide support for the predictions of this study. This study suggests a negative and significant association between the dummy variables for female CFOs and the occurrences of financial reporting fraud. The authors find that this association is contingent on governance mechanisms [e.g. ownership structure, politically connected CEOs and firms' conditions that do (or do not) invest in a gender-diverse board]. Originality/value This study offers different perspectives on the impact of female CFOs on the occurrences of financial reporting fraud. The results of this study are distinguishable from prior studies. This study moves the analytical focus from the macro level (gender diversity or female corporate leaders) to the micro level (female CFOs) to understand firms' propensity to commit financial reporting fraud. Additionally, this study is based on factual financial reporting fraud cases, considering the US firms' fraud characteristics.

show abstract

Section: Results and Analysissupporting

confidence: 92%

Are female CFOs more ethical to the occurrences of financial reporting fraud? Theoretical and empirical evidence from cross-listed firms in the US

Maulidi

Shonhadji²,

Fachruzzaman³

et al. 2022

JFC

View full text Add to dashboard Cite

show abstract

Exploring the relationship between corporate ESG performance and corporate violation: Based on the fraud triangle theory

Wang,

Chen,

Wang

2024

Corp Soc Responsibility Env

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Enterprises should strive for sustainable development since it is a vital component of the economy. Sustainable development serves as a safeguard against elements that might negatively impact the future development of their companies. This article aims to explore the influence of corporate environmental, social, and governance (ESG) performance on corporate violation using Chinese A‐share listed firms as a sample. We discover that corporate ESG performance considerably discourages corporate violation behavior, reducing the risk of corporate violations. Based on the fraud triangle theory, we also show that corporate ESG performance reduces the opportunity of corporate violations by improving information transparency, reduces the pressure of corporate violations by alleviating financing constraints, and reduces the rationalization of corporate violations by increasing media attention. By examining particular corporate violations, we document that corporate ESG performance is more effective for disclosure violations and general violations in corporate governance. Further analysis shows that corporate ESG performance has a considerable impact on companies in nonstate‐owned and small‐company subsamples. These results add to the literature and provide theoretical insights for governors, regulators, company executives, auditors, and other stakeholders.

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Financial Agglomeration, Bank Enterprise Distance, and SME Performance: Evidence from China

Li,

Ma,

2024

J Knowl Econ

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Do foreign investors deter corporate fraud? Evidence from China

Cited by 9 publications

References 59 publications

Are female CFOs more ethical to the occurrences of financial reporting fraud? Theoretical and empirical evidence from cross-listed firms in the US

Are female CFOs more ethical to the occurrences of financial reporting fraud? Theoretical and empirical evidence from cross-listed firms in the US

Exploring the relationship between corporate ESG performance and corporate violation: Based on the fraud triangle theory

Financial Agglomeration, Bank Enterprise Distance, and SME Performance: Evidence from China

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