Fraudulent Financial Reporting: An Empirical Analysis in Malaysia

36 Pages Posted: 1 Dec 2011 Last revised: 13 Jan 2012

See all articles by Sherliza Puat Nelson

Sherliza Puat Nelson

International Islamic University of Malaysia (IIUM)

Date Written: June 29, 2011

Abstract

The objective of this research is to investigate the fraud firms’ characteristics in two ways; 3 years prior and after, the fraud occurrences. The characteristics comprise of the firms’ audit committee size, audit committee independence, board’s size, independent directors, block holders, cash flows operating and long term debts. The sample includes the fraudulent firms identified based on certain restrictions consistent with prior literature. Data collection is hand collected via corporate annuals reports. The significance of the research project is to identify the fraud firms’ characteristics and provide some insights before and after the fraud took place. Findings show that block holders and independent directors are important features in an organisation.

Keywords: Fraudulent financial reporting, audit committee, board size, independence, block holder, cash flows, long term debts

JEL Classification: M40, M42, M48, J24

Suggested Citation

Nelson, Sherliza Puat, Fraudulent Financial Reporting: An Empirical Analysis in Malaysia (June 29, 2011). Available at SSRN: https://ssrn.com/abstract=1966317 or http://dx.doi.org/10.2139/ssrn.1966317

Sherliza Puat Nelson (Contact Author)

International Islamic University of Malaysia (IIUM) ( email )

Department of Accounting, KENMS
P.O.Box 10, Jalan Sg Pusu
Kuala Lumpur, 50728
Malaysia

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