Audit committee characteristics, board diversity, and fraudulent financial reporting in Malaysia

Marziana Madah Marzuki, Noor Marini Haji-Abdullah, Rohana Othman, Effiezal Aswadi Abdul Wahab, Iman Harymawan

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

We investigate the relationship between audit committee characteristics, board diversity, and the propensity of committing fraud among Malaysian firms. Based on a matched-pair sample of 64 observations for the years 2002–2014, we find limited evidence to suggest that audit committee characteristics matters. However, we find a negative relationship between the percentage of female directors and the likelihood of fraud. Results highlight the importance of the audit committee (in) effectiveness and the relative importance of female directors in Malaysia. Our results are robust when we consider a structural change in corporate governance policies in Malaysia.

Original languageEnglish
Pages (from-to)143-167
Number of pages25
JournalAsian Academy of Management Journal
Volume24
Issue number2
DOIs
Publication statusPublished - 2019

Keywords

  • Audit committee
  • Corporate governanceindependence
  • Expertise
  • Fraudulent financial reporting (FFR)

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