The Influence of Corporate Governance on the Mitigation of Fraudulent Financial Reporting
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| Natura: | Artículo científico |
| Lingua: | en |
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Fundação Escola de Comércio Álvares Penteado
2020
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| _version_ | 1876437171681886208 |
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| author | Orleans Silva Martins |
| author_facet | Orleans Silva Martins |
| contents | The Influence of Corporate Governance on the Mitigation of Fraudulent Financial Reporting Orleans Silva Martins Raul Ventura Administración y Contabilidad Frauds Insolvency Financial Reports Corporate Governance Purpose: This study analyzes the influence of the corporate governance structure in terms of mitigating the likelihood of fraudulent financial reporting (FFR) by firms in Brazil.Design/methodology/approach: For this, we analyze the data of 314 publicly traded companies to estimate the likelihood of bankruptcy and the possibility of earnings manipulation, for subsequent identification of .Findings: Our results show that in 5.5% of cases there is an indication that FFR is likely, bankruptcy is predicted in 16.9% of cases, and the likelihood of earnings manipulation is identified in 17.7%. The corporate governance structure of the firms influences FFR mitigation, either directly or indirectly by reducing the chances of bankruptcy or earnings manipulation. We note that board-related governance practices are more effective against predicted bankruptcy, and audit-related practices are more related to reducing earnings manipulation. Originality/value: The main contributions of this study lie in it identifying the probabilities of reporting fraud, bankruptcy, and earnings manipulation for companies in Brazil, as well as it verifying that corporate governance has been effective in mitigating these problems, either directly or indirectly. Thus, this information is useful for investors and regulators in this market. 2020 artículo científico 1806-4892 https://www.redalyc.org/articulo.oa?id=94768352004 https://www.redalyc.org/journal/947/94768352004/ https://www.redalyc.org/journal/947/94768352004/html/ https://www.redalyc.org/journal/947/94768352004/94768352004.epub https://www.redalyc.org/journal/947/94768352004/movil 10.7819/rbgn.v22i1.4039 en http://www.redalyc.org/revista.oa?id=947 Revista Brasileira de Gestão de Negócios - RBGN application/pdf Fundação Escola de Comércio Álvares Penteado Revista Brasileira de Gestão de Negócios - RBGN (Brasil) Num.1 Vol.22 |
| format | Artículo científico |
| id | redalyc_94768352004 |
| institution | Redalyc |
| language | en |
| publishDate | 2020 |
| publisher | Fundação Escola de Comércio Álvares Penteado |
| spellingShingle | The Influence of Corporate Governance on the Mitigation of Fraudulent Financial Reporting Orleans Silva Martins Administración y Contabilidad Frauds Insolvency Financial Reports Corporate Governance The Influence of Corporate Governance on the Mitigation of Fraudulent Financial Reporting Orleans Silva Martins Raul Ventura Administración y Contabilidad Frauds Insolvency Financial Reports Corporate Governance Purpose: This study analyzes the influence of the corporate governance structure in terms of mitigating the likelihood of fraudulent financial reporting (FFR) by firms in Brazil.Design/methodology/approach: For this, we analyze the data of 314 publicly traded companies to estimate the likelihood of bankruptcy and the possibility of earnings manipulation, for subsequent identification of .Findings: Our results show that in 5.5% of cases there is an indication that FFR is likely, bankruptcy is predicted in 16.9% of cases, and the likelihood of earnings manipulation is identified in 17.7%. The corporate governance structure of the firms influences FFR mitigation, either directly or indirectly by reducing the chances of bankruptcy or earnings manipulation. We note that board-related governance practices are more effective against predicted bankruptcy, and audit-related practices are more related to reducing earnings manipulation. Originality/value: The main contributions of this study lie in it identifying the probabilities of reporting fraud, bankruptcy, and earnings manipulation for companies in Brazil, as well as it verifying that corporate governance has been effective in mitigating these problems, either directly or indirectly. Thus, this information is useful for investors and regulators in this market. 2020 artículo científico 1806-4892 https://www.redalyc.org/articulo.oa?id=94768352004 https://www.redalyc.org/journal/947/94768352004/ https://www.redalyc.org/journal/947/94768352004/html/ https://www.redalyc.org/journal/947/94768352004/94768352004.epub https://www.redalyc.org/journal/947/94768352004/movil 10.7819/rbgn.v22i1.4039 en http://www.redalyc.org/revista.oa?id=947 Revista Brasileira de Gestão de Negócios - RBGN application/pdf Fundação Escola de Comércio Álvares Penteado Revista Brasileira de Gestão de Negócios - RBGN (Brasil) Num.1 Vol.22 |
| title | The Influence of Corporate Governance on the Mitigation of Fraudulent Financial Reporting |
| topic | Administración y Contabilidad Frauds Insolvency Financial Reports Corporate Governance |
| url | https://www.redalyc.org/articulo.oa?id=94768352004 https://www.redalyc.org/journal/947/94768352004/ https://www.redalyc.org/journal/947/94768352004/html/ https://www.redalyc.org/journal/947/94768352004/94768352004.epub https://www.redalyc.org/journal/947/94768352004/movil |