TY - JOUR
T1 - Audit committee characteristics, board diversity, and fraudulent financial reporting in Malaysia
AU - Marzuki, Marziana Madah
AU - Haji-Abdullah, Noor Marini
AU - Othman, Rohana
AU - Wahab, Effiezal Aswadi Abdul
AU - Harymawan, Iman
N1 - Publisher Copyright:
© Asian Academy of Management and Penerbit Universiti Sains Malaysia, 2019.
PY - 2019
Y1 - 2019
N2 - 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.
AB - 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.
KW - Audit committee
KW - Corporate governanceindependence
KW - Expertise
KW - Fraudulent financial reporting (FFR)
UR - http://www.scopus.com/inward/record.url?scp=85078288133&partnerID=8YFLogxK
U2 - 10.21315/aamj2019.24.2.7
DO - 10.21315/aamj2019.24.2.7
M3 - Article
AN - SCOPUS:85078288133
SN - 1394-2603
VL - 24
SP - 143
EP - 167
JO - Asian Academy of Management Journal
JF - Asian Academy of Management Journal
IS - 2
ER -
