Management predisposition, motives, opportunity and earnings management for fraudulent financial reporting / Suhaily Hasnan

This study investigates the factors that lead to the occurrences of fraudulent financial reporting. Specifically, this study examines the effect of predisposition (i.e. history of prior violations, related party transactions, and founders on the Board), motives (i.e. economic factor, ownership facto...

Full description

Saved in:

Bibliographic Details
Main Author:	Hasnan, Suhaily
Format:	Thesis
Language:	English
Published:	2010
Subjects:	Balance sheets Financial statements Including corporation reports Financial reporting Financial disclosure
Online Access:	https://ir.uitm.edu.my/id/eprint/40584/1/40584.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uitm-ir.40584
record_format	uketd_dc
spelling	my-uitm-ir.405842023-08-22T02:33:04Z Management predisposition, motives, opportunity and earnings management for fraudulent financial reporting / Suhaily Hasnan 2010 Hasnan, Suhaily Balance sheets. Financial statements. Including corporation reports. Financial reporting. Financial disclosure This study investigates the factors that lead to the occurrences of fraudulent financial reporting. Specifically, this study examines the effect of predisposition (i.e. history of prior violations, related party transactions, and founders on the Board), motives (i.e. economic factor, ownership factors and political factor) and opportunity (i.e. poor corporate governance) on the occurrences of fraudulent financial reporting in Malaysia. In order to see the impact of predisposition, motives, opportunity and the occurrences of fraudulent financial reporting, 94 non-financial companies listed on Bursa Malaysia over the period 1996-2006, with complete data for predisposition, motives, and opportunity variables were selected. From the analysis conducted, the study finds that the corporate environment most likely to lead to an accounting fraud is characterized by factors that include'fewer related party transactions, higher number of prior violations, higher proportion of founders on the board, higher level of financial distress, higher level of cross directorship and lower audit quality. The study also finds that firms with family and foreign investors are less likely to have enforcement actions against them. Despite the general belief that greater independence of the board is associated with a lower incidence of fraudulent financial reporting, this study finds no evidence that level of board independence plays a role in the potential for fraudulent financial reporting. In addition, the study finds that political connection is not a determinant of fraudulent financial reporting in Malaysia. To the best of the researcher's knowledge, this study is the first to test whether the practice of earnings management may escalate to the level of accounting fraud. Interestingly, the study provides evidence that earnings management has a positive and significant relationship with fraudulent financial reporting. This confirms that the practice of earnings management, in addition to other governance variables, affects the probability of fraudulent financial reporting. 2010 Thesis https://ir.uitm.edu.my/id/eprint/40584/ https://ir.uitm.edu.my/id/eprint/40584/1/40584.pdf text en public phd doctoral Universiti Teknologi MARA (UiTM) Faculty of Accountancy Abdul Rahman, Rashidah
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Abdul Rahman, Rashidah
topic	Balance sheets Financial statements Including corporation reports Financial reporting Financial disclosure
spellingShingle	Balance sheets Financial statements Including corporation reports Financial reporting Financial disclosure Hasnan, Suhaily Management predisposition, motives, opportunity and earnings management for fraudulent financial reporting / Suhaily Hasnan
description	This study investigates the factors that lead to the occurrences of fraudulent financial reporting. Specifically, this study examines the effect of predisposition (i.e. history of prior violations, related party transactions, and founders on the Board), motives (i.e. economic factor, ownership factors and political factor) and opportunity (i.e. poor corporate governance) on the occurrences of fraudulent financial reporting in Malaysia. In order to see the impact of predisposition, motives, opportunity and the occurrences of fraudulent financial reporting, 94 non-financial companies listed on Bursa Malaysia over the period 1996-2006, with complete data for predisposition, motives, and opportunity variables were selected. From the analysis conducted, the study finds that the corporate environment most likely to lead to an accounting fraud is characterized by factors that include'fewer related party transactions, higher number of prior violations, higher proportion of founders on the board, higher level of financial distress, higher level of cross directorship and lower audit quality. The study also finds that firms with family and foreign investors are less likely to have enforcement actions against them. Despite the general belief that greater independence of the board is associated with a lower incidence of fraudulent financial reporting, this study finds no evidence that level of board independence plays a role in the potential for fraudulent financial reporting. In addition, the study finds that political connection is not a determinant of fraudulent financial reporting in Malaysia. To the best of the researcher's knowledge, this study is the first to test whether the practice of earnings management may escalate to the level of accounting fraud. Interestingly, the study provides evidence that earnings management has a positive and significant relationship with fraudulent financial reporting. This confirms that the practice of earnings management, in addition to other governance variables, affects the probability of fraudulent financial reporting.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Hasnan, Suhaily
author_facet	Hasnan, Suhaily
author_sort	Hasnan, Suhaily
title	Management predisposition, motives, opportunity and earnings management for fraudulent financial reporting / Suhaily Hasnan
title_short	Management predisposition, motives, opportunity and earnings management for fraudulent financial reporting / Suhaily Hasnan
title_full	Management predisposition, motives, opportunity and earnings management for fraudulent financial reporting / Suhaily Hasnan
title_fullStr	Management predisposition, motives, opportunity and earnings management for fraudulent financial reporting / Suhaily Hasnan
title_full_unstemmed	Management predisposition, motives, opportunity and earnings management for fraudulent financial reporting / Suhaily Hasnan
title_sort	management predisposition, motives, opportunity and earnings management for fraudulent financial reporting / suhaily hasnan
granting_institution	Universiti Teknologi MARA (UiTM)
granting_department	Faculty of Accountancy
publishDate	2010
url	https://ir.uitm.edu.my/id/eprint/40584/1/40584.pdf
_version_	1783734582945775616

Management predisposition, motives, opportunity and earnings management for fraudulent financial reporting / Suhaily Hasnan

Similar Items