The Likelihood Of Fraudulent Financial Reporting Among Listed Companies In Nigeria: Application Of The Fraud Triangle Theory

The objective of this study is to investigate the likelihood of fraudulent financial reporting among the listed companies in Nigeria. Using several proxies of the fraud triangle theory: liquidity, profitability, and financial distress (pressure elements); auditor firm size, audit fees, auditor firm...

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Main Author:	Murumba, Inekwe
Format:	Thesis
Language:	English
Published:	2021
Subjects:	HF5001-6182 Business
Online Access:	http://eprints.usm.my/51933/1/INEKWE%20MURUMBA.pdf
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id	my-usm-ep.51933
record_format	uketd_dc
spelling	my-usm-ep.519332022-03-15T06:54:30Z The Likelihood Of Fraudulent Financial Reporting Among Listed Companies In Nigeria: Application Of The Fraud Triangle Theory 2021-05 Murumba, Inekwe HF5001-6182 Business The objective of this study is to investigate the likelihood of fraudulent financial reporting among the listed companies in Nigeria. Using several proxies of the fraud triangle theory: liquidity, profitability, and financial distress (pressure elements); auditor firm size, audit fees, auditor firm size-audit fees interaction, and corporate social responsibility (opportunity elements); earnings management, and earnings management-audit fees interaction (rationalisation elements), this study test whether the identified variables are related to fraudulent financial reporting in Nigeria. Using a dataset of 516 firm-year observations of non-financial listed companies on the Nigerian stock exchange from 2013 to 2018, the study uses Benford’s law of first digit to categorise the companies into fraudulent and non-fraudulent firms. From the multivariate logistic regression analyses of the data, the study finds that liquidity and profitability as pressure elements are significantly related to fraudulent financial reporting. However, while profitability exerts a negative relationship, liquidity provides support for a positive relationship. Among the proxies of opportunity element, the audit fee has a significant negative relationship with fraudulent financial reporting. In respect of the rationalisation element, the audit fee moderates the relationship between earnings management and fraudulent financial reporting. The results have implications for early detection and prevention of fraudulent financial reporting in Nigeria. The findings in this study could also encourage regulatory authorities to review the audit fee differences between the Big 4 audit firms and the non-Big 4 audit firms in an effort to minimise the incidence of fraudulent financial reporting in Nigeria. Finally, the outcomes of several additional and robustness tests performed support the primary findings of this study. 2021-05 Thesis http://eprints.usm.my/51933/ http://eprints.usm.my/51933/1/INEKWE%20MURUMBA.pdf application/pdf en public phd doctoral Perpustakaan Hamzah Sendut Pusat Pengajian Siswazah Perniagaan
institution	Universiti Sains Malaysia
collection	USM Institutional Repository
language	English
topic	HF5001-6182 Business
spellingShingle	HF5001-6182 Business Murumba, Inekwe The Likelihood Of Fraudulent Financial Reporting Among Listed Companies In Nigeria: Application Of The Fraud Triangle Theory
description	The objective of this study is to investigate the likelihood of fraudulent financial reporting among the listed companies in Nigeria. Using several proxies of the fraud triangle theory: liquidity, profitability, and financial distress (pressure elements); auditor firm size, audit fees, auditor firm size-audit fees interaction, and corporate social responsibility (opportunity elements); earnings management, and earnings management-audit fees interaction (rationalisation elements), this study test whether the identified variables are related to fraudulent financial reporting in Nigeria. Using a dataset of 516 firm-year observations of non-financial listed companies on the Nigerian stock exchange from 2013 to 2018, the study uses Benford’s law of first digit to categorise the companies into fraudulent and non-fraudulent firms. From the multivariate logistic regression analyses of the data, the study finds that liquidity and profitability as pressure elements are significantly related to fraudulent financial reporting. However, while profitability exerts a negative relationship, liquidity provides support for a positive relationship. Among the proxies of opportunity element, the audit fee has a significant negative relationship with fraudulent financial reporting. In respect of the rationalisation element, the audit fee moderates the relationship between earnings management and fraudulent financial reporting. The results have implications for early detection and prevention of fraudulent financial reporting in Nigeria. The findings in this study could also encourage regulatory authorities to review the audit fee differences between the Big 4 audit firms and the non-Big 4 audit firms in an effort to minimise the incidence of fraudulent financial reporting in Nigeria. Finally, the outcomes of several additional and robustness tests performed support the primary findings of this study.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Murumba, Inekwe
author_facet	Murumba, Inekwe
author_sort	Murumba, Inekwe
title	The Likelihood Of Fraudulent Financial Reporting Among Listed Companies In Nigeria: Application Of The Fraud Triangle Theory
title_short	The Likelihood Of Fraudulent Financial Reporting Among Listed Companies In Nigeria: Application Of The Fraud Triangle Theory
title_full	The Likelihood Of Fraudulent Financial Reporting Among Listed Companies In Nigeria: Application Of The Fraud Triangle Theory
title_fullStr	The Likelihood Of Fraudulent Financial Reporting Among Listed Companies In Nigeria: Application Of The Fraud Triangle Theory
title_full_unstemmed	The Likelihood Of Fraudulent Financial Reporting Among Listed Companies In Nigeria: Application Of The Fraud Triangle Theory
title_sort	likelihood of fraudulent financial reporting among listed companies in nigeria: application of the fraud triangle theory
granting_institution	Perpustakaan Hamzah Sendut
granting_department	Pusat Pengajian Siswazah Perniagaan
publishDate	2021
url	http://eprints.usm.my/51933/1/INEKWE%20MURUMBA.pdf
_version_	1747822114919940096

The Likelihood Of Fraudulent Financial Reporting Among Listed Companies In Nigeria: Application Of The Fraud Triangle Theory

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