CORPORATE GOVERNANCE SYSTEM AND FINANCIAL ACCOUNTING FRAUD

ABSTRACT

The objective of the study was to examine the relationship between corporate governance system and financial accounting fraud.

The study made use of the panel research design. The population of this study consisted of all (57) companies quoted in the financial sector on floor of the Nigerian Stock Exchange. A census of the entire population was taken as the sample size. The study used the entire fifty seven (57) companies in the financial sector from 2012-2019. The method of data analysis employed was the panel regression technique.

The study revealed that Audit committee financial expertise has a significant negative relationship with financial accounting fraud. Audit committee gender diversity has a significant positive relationship with financial accounting fraud. Board independence has a significant negative relationship with financial accounting fraud. Board dominance has a significant positive relationship with financial accounting fraud. Risk management committee has an insignificant relationship with financial accounting fraud and institutional ownership has an insignificant negative relationship with financial accounting fraud. The study recommends financial experts on the audit committee board minimises the likelihood of financial accounting fraud, companies are encouraged to maintain an optimum number of directors in its board, in order to prevent a few from imposing their will on the board

Corporate governance structure provide a necessary and important means to reduce fraud along with the application of forensic accounting techniques.