Relationship between corporate governance and financial statement fraud : Evidence from Malaysia

• Main Author: Laila Rasyiqah, Zainal Abidin
• Format: Thesis
• Language: English; English
• Published: 2023
• Subjects: HG Finance
• Online Access: https://etd.uum.edu.my/11378/1/s829344_01.pdf; https://etd.uum.edu.my/11378/2/s829344_02.pdf; https://etd.uum.edu.my/11378/

This study investigates the relationship between corporate governance (CG) and financial statement fraud in the Malaysian context, utilizing a quantitative methods approach. The research draws on data obtained from the Securities Commission Malaysia (SCM) enforcement releases and Bursa Malaysia enforcement releases from 2018 to 2023. Through quantitative analysis of these sources, the study examines the effectiveness of corporate governance mechanisms in preventing and detecting financial statement fraud. Findings suggest that robust corporate governance practices, including independent boards, competent audit committees, and effective remuneration structures, play a crucial role in mitigating the risk of fraud. The study also highlights the significance of regulatory oversight and enforcement by SCM and Bursa Malaysia in deterring financial statement fraud. These findings contribute to the understanding of corporate governance's impact on fraud prevention and have implications for policymakers, regulators, and practitioners aiming to strengthen governance frameworks, enhance internal controls, and promote transparency and accountability in financial reporting.