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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
https://ir.uitm.edu.my/id/eprint/17183/
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spelling my.uitm.ir.171832022-04-11T03:26:01Z https://ir.uitm.edu.my/id/eprint/17183/ Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman 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 NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/17183/1/TM_NORALIZAH%20MOHD%20ALlMAN%20AC%2013_5.pdf (2013) Directors' shareholdings and executive equity-based compensation influence on fraudulent financial reporting: Malaysia case / Noralizah Mohd Aliman. Masters thesis, thesis, Universiti Teknologi MARA.
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
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
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
publishDate 2013
url https://ir.uitm.edu.my/id/eprint/17183/1/TM_NORALIZAH%20MOHD%20ALlMAN%20AC%2013_5.pdf
https://ir.uitm.edu.my/id/eprint/17183/
_version_ 1731229051722399744
score 13.211869

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