CORPORATE GOVERNANCE AND FRAUDULENT FINANCIAL REPORTING IN NIGERIAN QUOTED BANKS

ABSTRACT

The study examined corporate governance and fraudulent financial reporting in Nigerian quoted banks. This study used a sample of twelve (12) quoted banks in the Nigerian Stock Exchange that have consistently published their annual audited financial report for the period of 2012 to 2019. The data collected are analyzed using descriptive statistics, correlation analysis and panel regression approach. The results from the fixed effect regression shows board independence has a negative and insignificant relationship with fraudulent financial reporting, board size has a negative and insignificant relationship with fraudulent financial reporting, audit committee existence has a positive and insignificant relationship with fraudulent financial reporting and ownership structure has positive and significant relationship between with fraudulent financial reporting at 1% level. The study recommended that banks management should strategically consider the ownership structure of the bank because it leads to the presence of fraudulent financial reporting. The study therefore suggested that further empirical study should be conducted on the area of corporate governance and fraudulent financial reporting by employing corporate governance mechanisms that reduce the incidence of fraudulent financial reporting.