Risk Management practices and potential fraudulent financial reporting: evidence from Malaysia
| Autor: | Marziana Madah Marzuki, Wan Zurina Nik Abdul Majid, Hatinah Abu Bakar, Effiezal Aswadi Abdul Wahab, Zuraidah Mohd Sanusi |
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| Jazyk: | angličtina |
| Rok vydání: | 2024 |
| Předmět: | |
| Zdroj: | AJAR (Asian Journal of Accounting Research), Vol 9, Iss 2, Pp 116-126 (2024) |
| Druh dokumentu: | article |
| ISSN: | 2443-4175 2459-9700 |
| DOI: | 10.1108/AJAR-01-2022-0017/full/pdf |
| Popis: | Purpose – This paper investigates the relationship between risk management practices and potential fraudulent financial reporting in Malaysia by considering recent regulatory reforms of the Malaysian government on risk management practices. Design/methodology/approach – The sample of this study was based on 257 firm-year observations during the 2012–2017 period. This study employed panel-least square regressions with period fixed effects. Findings – This study found a significant association between risk management activities in the disclosure and potential fraudulent financial reporting. Nevertheless, this study found there is insignificant effect of the risk-management committee in reducing potential of fraudulent financial reporting. Originality/value – This study is a pioneer research that relates firms’ risk management practices with potential fraudulent financial reporting measured by F-score. Thus, this study provides an insight to regulators on the extent of risk-management practices in deterring potential fraudulent financial reporting which can be used as an input for greater enforcement of risk-management regulations. |
| Databáze: | Directory of Open Access Journals |
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