Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman

The primary objective of this study is to investigate whether directors' shareholdings and executive equity-based compensation influence the occurrence of fraudulent financial reporting in Malaysia. This study employed a sample of 180 listed firm-year observations of Malaysian listed companies...

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Main Author:	Mohd Aliman, Noralizah
Format:	Thesis
Language:	English
Published:	2013
Online Access:	https://ir.uitm.edu.my/id/eprint/17183/1/TM_NORALIZAH%20MOHD%20ALlMAN%20AC%2013_5.pdf
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id	my-uitm-ir.17183
record_format	uketd_dc
spelling	my-uitm-ir.171832022-04-11T03:26:01Z Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman 2013-06 Mohd Aliman, Noralizah The primary objective of this study is to investigate whether directors' shareholdings and executive equity-based compensation influence the occurrence of fraudulent financial reporting in Malaysia. This study employed a sample of 180 listed firm-year observations of Malaysian listed companies over the period 2003 to 2010. Specifically, the sample consists of 90 fraud firms, matched with 90 non-fraud firms. The sample of fraud firms was identified based on the announcement of fraud occurrence and breach of the listing requirement of Securities Commission and Bursa Malaysia. Employing the logistics regression approach, the findings show that directors' shareholdings have negative association with the occurrence of fraudulent financial reporting which indicate that the higher ownership level reduces the tendency of fraud to occur. The result also shows that the outstanding stock option available has positive association with fraud occurrence, suggesting that executive motivate to commit fraud to gain equity-based compensation. These results were robust even after controlling for firms specific factors, industry and year effects, and various specification tests. This study however, does not address other mechanisms of governance. 2013-06 Thesis https://ir.uitm.edu.my/id/eprint/17183/ https://ir.uitm.edu.my/id/eprint/17183/1/TM_NORALIZAH%20MOHD%20ALlMAN%20AC%2013_5.pdf text en public mphil masters Universiti Teknologi MARA Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
description	The primary objective of this study is to investigate whether directors' shareholdings and executive equity-based compensation influence the occurrence of fraudulent financial reporting in Malaysia. This study employed a sample of 180 listed firm-year observations of Malaysian listed companies over the period 2003 to 2010. Specifically, the sample consists of 90 fraud firms, matched with 90 non-fraud firms. The sample of fraud firms was identified based on the announcement of fraud occurrence and breach of the listing requirement of Securities Commission and Bursa Malaysia. Employing the logistics regression approach, the findings show that directors' shareholdings have negative association with the occurrence of fraudulent financial reporting which indicate that the higher ownership level reduces the tendency of fraud to occur. The result also shows that the outstanding stock option available has positive association with fraud occurrence, suggesting that executive motivate to commit fraud to gain equity-based compensation. These results were robust even after controlling for firms specific factors, industry and year effects, and various specification tests. This study however, does not address other mechanisms of governance.
format	Thesis
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
author	Mohd Aliman, Noralizah
spellingShingle	Mohd Aliman, Noralizah Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
author_facet	Mohd Aliman, Noralizah
author_sort	Mohd Aliman, Noralizah
title	Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
title_short	Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
title_full	Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
title_fullStr	Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
title_full_unstemmed	Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman
title_sort	directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: malaysia case / noralizah mohd aliman
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Accountancy
publishDate	2013
url	https://ir.uitm.edu.my/id/eprint/17183/1/TM_NORALIZAH%20MOHD%20ALlMAN%20AC%2013_5.pdf
_version_	1783733552898113536

Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman

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