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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Main Author: Puat Nelson, Sherliza
Format: Proceeding Paper
Language:English
English
English
Published: 2012
Subjects:
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
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author Puat Nelson, Sherliza
author_facet Puat Nelson, Sherliza
author_sort Puat Nelson, Sherliza
building IIUM Repository
collection Online Access
description 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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institution International Islamic University Malaysia
institution_category Local University
language English
English
English
last_indexed 2025-11-14T15:17:32Z
publishDate 2012
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spelling iium-251682012-10-17T00:31:33Z http://irep.iium.edu.my/25168/ Boards’ and Firms’ Characteristics: The case for Fraudulent Financial Reporting in Malaysia Puat Nelson, Sherliza H91 General special H96 Public policy (General), Policy sciences 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. 2012 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/25168/1/BAFA%2520Conference%25202012%2520-%2520outline%2520schedule.pdf application/pdf en http://irep.iium.edu.my/25168/2/BAFA%2520Conference%25202012%2520-%2520presentation%2520schedule.pdf application/pdf en http://irep.iium.edu.my/25168/9/sherliza_FFR_P2_Dec_14.pdf Puat Nelson, Sherliza (2012) Boards’ and Firms’ Characteristics: The case for Fraudulent Financial Reporting in Malaysia. In: British Accounting & Finance Association Annual Conference, 17-19 April 2012, Brighton, UK. (Unpublished)
spellingShingle H91 General special
H96 Public policy (General), Policy sciences
Puat Nelson, Sherliza
Boards’ and Firms’ Characteristics: The case for Fraudulent Financial Reporting in Malaysia
title Boards’ and Firms’ Characteristics: The case for Fraudulent Financial Reporting in Malaysia
title_full Boards’ and Firms’ Characteristics: The case for Fraudulent Financial Reporting in Malaysia
title_fullStr Boards’ and Firms’ Characteristics: The case for Fraudulent Financial Reporting in Malaysia
title_full_unstemmed Boards’ and Firms’ Characteristics: The case for Fraudulent Financial Reporting in Malaysia
title_short Boards’ and Firms’ Characteristics: The case for Fraudulent Financial Reporting in Malaysia
title_sort boards’ and firms’ characteristics: the case for fraudulent financial reporting in malaysia
topic H91 General special
H96 Public policy (General), Policy sciences
url 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