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Nexus Between Possibility of Fraudulent Financial Reporting and Corporate Governance: Evidence from Bangladesh

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dc.contributor.author Parvin, R.
dc.contributor.author Akter, M.
dc.date.accessioned 2024-01-03T03:16:45Z
dc.date.available 2024-01-03T03:16:45Z
dc.date.issued 2023
dc.identifier.uri http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/10031
dc.description.abstract This paper intends to test the nexus between the possibility of fraudulent financial reporting and the corporate governance in Bangladesh. The content analysis of annual reports has been performed for 125 Bangladeshi listed manufacturing companies. In this study, we apply more than one fraud indicator models such as Altman Z-score and Beneish M-score models to determine more accurately the chance of fraudulent financial reporting. The chance of fraudulent financial reporting is determined based on whether either one or both of Altman Z-score and Beneish Mscore models show red flags of potential fraud. This study found that board members with finance or accounting backgrounds are less likely to practice in misleading financial reporting since they may have the knowledge essential to understand fraudulent financial reporting strategies. This result implies that qualified directors may supervise financial reporting practices better, hence improving the quality of financial reports. Alternatively, some other components of corporate governance, such as board size, board independence, director ownership, gender diversity, and auditors' independence, have insignificant impacts on fraudulent financial reporting practices. This outcome indicates that these Bangladeshi corporate governance components may not be as strong in improving financial reporting credibility. In the context of Bangladesh, this is the first empirical study with management and policy implications. To the best of the writers’ knowledge, no article yet has been worked on the possibility of fraudulent financial reporting which calculated by multiple models and its relationship with the corporate governance in the context of Bangladesh. en_US
dc.language.iso en en_US
dc.publisher University of Jaffna en_US
dc.subject Altman Z-score Model en_US
dc.subject Beneish M-score Model en_US
dc.subject Corporate Governance en_US
dc.subject Earnings Management en_US
dc.subject Financial Statements en_US
dc.subject Fraudulent Financial Reporting en_US
dc.subject JEL Classcification: G34 en_US
dc.title Nexus Between Possibility of Fraudulent Financial Reporting and Corporate Governance: Evidence from Bangladesh en_US
dc.type Article en_US


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