Tax avoidance, board diversity and management fraud: Malaysian public listed companies / Roshidah Safeei

In light of recent high-profile business failures, such as Enron, WorldCom, and Toshiba, investors have become more cognizant of the possibility that a company’s financial statements may not accurately reflect its performance due to management fraud. The purpose of this study is threefold: to invest...

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Main Author:	Safeei, Roshidah
Format:	Thesis
Language:	English
Published:	2023
Subjects:	Balance sheet Financial statements Corporation reports Including pro forma statements
Online Access:	https://ir.uitm.edu.my/id/eprint/102231/1/102231.pdf
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id	my-uitm-ir.102231
record_format	uketd_dc
spelling	my-uitm-ir.1022312024-11-19T01:42:39Z Tax avoidance, board diversity and management fraud: Malaysian public listed companies / Roshidah Safeei 2023 Safeei, Roshidah Balance sheet. Financial statements. Corporation reports. Including pro forma statements In light of recent high-profile business failures, such as Enron, WorldCom, and Toshiba, investors have become more cognizant of the possibility that a company’s financial statements may not accurately reflect its performance due to management fraud. The purpose of this study is threefold: to investigate the influence of tax avoidance on management fraud occurrence, to investigate the influence of board diversity on management fraud occurrence and to examine the moderating effects of board diversity on the relationship between tax avoidance and management fraud occurrence in Malaysian public listed companies. Using enforcement action releases issued by the Security Commission of Malaysia and Bursa Malaysia, this study identifies 50 fraud firms that committed management fraud from 2012 to 2019. The fraud firms are matched with non-fraud firms using a one-to-two ratio based on the same industry, year and firm size. As a result, this study utilises a sample of 50 fraud and 100 non-fraud firms listed on Bursa Malaysia This study employs binary logistic regression analysis and finds that tax avoidance is negatively associated with management fraud, as fraud firms are less likely to engage in tax avoidance activities. Furthermore, this study finds a significant relationship between board tenure and board education diversity with management fraud whereby an increase in board tenure and board education diversity decreases the likelihood of the occurrence of management fraud. The study also finds that board tenure and education diversity moderate the relationship between tax avoidance and management fraud. However, no evidence is found to suggest that board gender or age diversity has a mitigating effect. The results of this study indicate that board tenure and board education diversity play a significant role in curbing management fraud in Malaysian firms. Overall, this study provides valuable insights into the relationships between tax avoidance, board diversity, and management fraud in Malaysian firms, an area that has been understudied in the past. 2023 Thesis https://ir.uitm.edu.my/id/eprint/102231/ https://ir.uitm.edu.my/id/eprint/102231/1/102231.pdf text en public phd doctoral Universiti Teknologi MARA Arshad Ayub Graduate Business School
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
topic	Balance sheet Financial statements Corporation reports Including pro forma statements
spellingShingle	Balance sheet Financial statements Corporation reports Including pro forma statements Safeei, Roshidah Tax avoidance, board diversity and management fraud: Malaysian public listed companies / Roshidah Safeei
description	In light of recent high-profile business failures, such as Enron, WorldCom, and Toshiba, investors have become more cognizant of the possibility that a company’s financial statements may not accurately reflect its performance due to management fraud. The purpose of this study is threefold: to investigate the influence of tax avoidance on management fraud occurrence, to investigate the influence of board diversity on management fraud occurrence and to examine the moderating effects of board diversity on the relationship between tax avoidance and management fraud occurrence in Malaysian public listed companies. Using enforcement action releases issued by the Security Commission of Malaysia and Bursa Malaysia, this study identifies 50 fraud firms that committed management fraud from 2012 to 2019. The fraud firms are matched with non-fraud firms using a one-to-two ratio based on the same industry, year and firm size. As a result, this study utilises a sample of 50 fraud and 100 non-fraud firms listed on Bursa Malaysia This study employs binary logistic regression analysis and finds that tax avoidance is negatively associated with management fraud, as fraud firms are less likely to engage in tax avoidance activities. Furthermore, this study finds a significant relationship between board tenure and board education diversity with management fraud whereby an increase in board tenure and board education diversity decreases the likelihood of the occurrence of management fraud. The study also finds that board tenure and education diversity moderate the relationship between tax avoidance and management fraud. However, no evidence is found to suggest that board gender or age diversity has a mitigating effect. The results of this study indicate that board tenure and board education diversity play a significant role in curbing management fraud in Malaysian firms. Overall, this study provides valuable insights into the relationships between tax avoidance, board diversity, and management fraud in Malaysian firms, an area that has been understudied in the past.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Safeei, Roshidah
author_facet	Safeei, Roshidah
author_sort	Safeei, Roshidah
title	Tax avoidance, board diversity and management fraud: Malaysian public listed companies / Roshidah Safeei
title_short	Tax avoidance, board diversity and management fraud: Malaysian public listed companies / Roshidah Safeei
title_full	Tax avoidance, board diversity and management fraud: Malaysian public listed companies / Roshidah Safeei
title_fullStr	Tax avoidance, board diversity and management fraud: Malaysian public listed companies / Roshidah Safeei
title_full_unstemmed	Tax avoidance, board diversity and management fraud: Malaysian public listed companies / Roshidah Safeei
title_sort	tax avoidance, board diversity and management fraud: malaysian public listed companies / roshidah safeei
granting_institution	Universiti Teknologi MARA
granting_department	Arshad Ayub Graduate Business School
publishDate	2023
url	https://ir.uitm.edu.my/id/eprint/102231/1/102231.pdf
_version_	1818588039016873984

Tax avoidance, board diversity and management fraud: Malaysian public listed companies / Roshidah Safeei

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