scholarly journals The Likelihood of Fraudulent Financial Reporting: The New Implementation of Malaysian Code of Corporate Governance (MCCG) 2017

2020 ◽  
Vol 11 (3) ◽  
pp. 84
Author(s):  
Siti Fadilah Bt Mat Zin ◽  
Marziana Madah Marzuki ◽  
Nik Kamaruzaman Hj Abdulatiff
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Financial Reporting ◽  
Annual Report ◽  
Descriptive Statistics ◽  
Fraudulent Financial Reporting ◽  
Board Diversity ◽  
Code Of Corporate Governance

On 26 April 2017 Securities Commission Malaysia has released new Malaysian Code of Corporate Governance (MCCG 2017) replacing MCCG 2012 with several changes and recommendations to enhance corporate’s accountability, transparency and sustainability. Therefore, the objective of this study is to compare the degree of compliance of this new MCCG 2017 among healthy companies and likelihood of fraudulent financial reporting companies using PN17 companies as a proxy. This study used content analysis of MCCG 2017 and disclosures provided in the annual report of the companies and analyzed it using descriptive statistics. We find that the degree of compliance even among healthy companies in Malaysia in terms of board diversity and board remuneration is still insufficient, and some of the companies are still reluctant to comply. This study provides initial evidence on the effect of new amendment of MCCG 2017 on the likelihood of fraudulent financial reporting in Malaysia.

scholarly journals ANALISIS PERBANDINGAN GOOD CORPORATE GOVERNANCE BAZNAS DAN LAZNAS

2019 ◽  
Vol 9 (2) ◽  
pp. 97-110
Author(s):  
Sri Wahjuni Latifah ◽  
Siska Aprilia ◽  
Dhaniel Syam
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Hypothesis Testing ◽  
Annual Report ◽  
Test Results ◽  
Good Corporate Governance ◽  
Analysis Technique

Abstrak Penelitian ini bertujuan untuk menganalisis perbandingan Good Corporate Governance ( Badan Amil Zakat nasional)  dan Laznas(Lembaga Amil Zakat Nasiona. Sampel penelitian ini sebanyak delapan belas(18) Baznas dan Laznas di Jawa Timur. Jenis dan sumber data diperoleh dari laporan tahunan badan atau lembaga amil zakat nasional di Jawa Timur tahun 2016-2017 yang diterbitkan di website resmi pid.baznas.go.id. Data dianalisis dengan beberapa tahap, yaitu melakukan content analysis dan  dilakukan uji hipotesis dengan Mann Whitney U Test. Hasil penelitian menunjukkan  uji Mann Whitney U Test sebesar 0.003,  dengan demikian terdapat perbedaan yang signifikan terhadap penerapan GCG Baznas dengan Laznas. Baznas lebih baik dalam menerapkan good corporate governance dibandingkan pada Laznas.Kata Kunci: Baznas, Laznas, Good Corporate Governance.AbstractThis study aims to compare the good corporate governance of the Baznas(Amil Zakat Agency) and Laznas(the National Amil Zakat Institution). The samples used in this study were 18 Amil Zakat Bodies and Amil Zakat Institutions. The types and sources of data are obtained from the annual report of the national amil zakat agency or institution in East Java for 2016-2017 which is published  on the official website of pid.baznas.go.id. The analysis technique in this study was to conduct content analysis, then carried out hypothesis testing with the Mann Whitney U Test. The Mann Whitney U Test results of 0.003 , which means there are significant differences. Based on the results of the study, the authors can conclude that there are differences in the application of good corporate governance at the Baznas with Laznas. The Baznas is better at implementing good corporate governance than at the Laznas.Keywords: Baznas, Laznas, Good Corporate Governance.

Enhancing Financial Reporting Quality through Corporate Ethics Commitment

2021 ◽  
Vol 6 (2) ◽  
pp. 84-94
Author(s):  
Noorul Azwin Md Nasir ◽  
Hafiza Aishah Hashim ◽  
Noorshella Che Nawi ◽  
Mohd Nor Hakimin Yusoff ◽  
Nur Athirah Mohd Aluwi
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Code Of Ethics ◽  
Reporting Quality ◽  
Jel Classification ◽  
Financial Reporting Quality ◽  
Corporate Ethics ◽  
Financial Statement Fraud ◽  
Code Of Corporate Governance

Objective - A rising number of cases involving ethical misconduct within firms have of late received considerable attention in Malaysia. Despite the country's declaring having a strong corporate governance policy, strengthened through the Code of Ethics for Company Directors and Malaysia Code of Corporate Governance, unethical practices, and lack of integrity within firms remain an issue. This paper aims to review the current implementation of corporate ethical conducts among corporate governance practitioners as well as factors that influence corporate ethics commitment in a firm. Methodology/Technique - This paper is developed from extensive readings of previous literature on corporate governance practices and their effect on the quality of financial reports. Findings - This paper discloses collective approaches of corporate ethics practiced in Malaysian firms and how the implementation has enhanced the firms' overall financial reporting quality. It demonstrates current issues and the importance of corporate ethics commitment to enhance financial reporting quality. Firms that emphasize ethical commitments, reduce the risk of financial statement fraud and firms will naturally gain trust from their stakeholders. Novelty - This paper stresses the importance of sound ethical conduct above other factors that influence the financial reporting quality of firms in Malaysia. This paper is the result of extensive research on corporate ethics commitment and financial reporting quality. Type of Paper - Review. Keywords: Corporate Ethics; Corporate Governance; Financial Reporting Quality JEL Classification: G34, M41.

Fraudulent Financial Reporting: An Application of Fraud Pentagon Theory to Association of Southeast Asian Nations Corporate Governance Scorecard

2019 ◽  
Vol 9 (5) ◽  
pp. 1729 ◽  
Author(s):  
Imang Dapit PAMUNGKAS ◽  
St. Dwiarso UTOMO
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Financial Stability ◽  
Sampling Technique ◽  
External Pressure ◽  
Managerial Ownership ◽  
Fraudulent Financial Reporting ◽  
Audit Opinion ◽  
Opinion Change ◽  
Insignificant Effect

This study aims to detect and examine fraudulent financial reporting by applying fraud pentagon theory to all companies implementing the Association of Southeast Asian Nations (ASEAN) Corporate Governance Scorecard in Indonesia. This study has the following objectives: to examine and analyze the effect of financial stability, external pressure, financial target, nature of industry, audit opinion, change of directors, managerial ownership against fraudulent financial reporting. In this research, we use correlation research type. The population of this sample is all sectors of companies listed on the Indonesia Stock Exchange. Using sampling technique in the form of Purposive Sampling Technique applying ASEAN Corporate Governance Scorecard in Indonesia with research period of 2012 to 2016, which produce 30 samples, multiple linear regression analysis using SPSS version 22. The results of this study found that financial stability, managerial ownership has a negative and insignificant effect on fraudulent financial reporting. External pressure, nature of industry has a negative and significant effect on fraudulent financial reporting. Financial Target, Audit Opinion, Change of Directors has a positive and insignificant effect on Fraudulent Financial Reporting.

scholarly journals Corporate governance and Chinese ghost cities

2016 ◽  
Vol 13 (4) ◽  
pp. 249-265
Author(s):  
Hugh Grove ◽  
Mac Clouse
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Accounting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Fraudulent Financial Reporting ◽  
The U.S ◽  
International Accounting Standards Board

Sir David Tweedy, the former chair of the International Accounting Standards Board, observed: “The scandals that we have seen in recent years are often attributed to accounting although, in fact, I think the U.S. cases are corporate governance scandals involving fraud” (Tweedy, 2007). This paper will show that many of the recent Chinese cases of fraudulent financial reporting are also really corporate governance scandals involving fraud.

scholarly journals The Effect of Performance and Corporate Governance to Risk Disclosure among Listed Companies in Malaysia

2021 ◽  
Vol 16 (1) ◽  
pp. 119-161
Author(s):  
Ag Kaifah Riyard Kiflee ◽  
◽  
Mohd Noor Azli Ali Khan ◽  
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Annual Report ◽  
Listed Companies ◽  
Board Independence ◽  
Risk Disclosure ◽  
Interaction Variable ◽  
Variable Content ◽  
The Relationship ◽  
Disclosure Practice

The objective of this study was to determine the presence of risk information within the annual report of Malaysian non-financial listed companies and empirically extend the current literature of corporate governance and risk disclosure by incorporating an interaction effect in the model. The study found that listed companies in Malaysia experienced a positive upward trend in terms of risk disclosure practice for 10 years (2008-2017). A total of 166 companies were randomly extracted from Main Board of Bursa Malaysia from 2008 to 2017. This study used content analysis, descriptive statistics and multiple regression to explain the relationship between corporate governance and risk disclosure with the effect of the interaction variable. The study also found positive and significant relationship between board independence, board size and board gender with risk disclosure practice. It is also revealed that attainment discrepancies positively influence the relationship between corporate governance and risk disclosure practices among listed companies in Malaysia. Keywords: risk disclosure, annual report, corporate governance, interaction variable, content analysis

scholarly journals PENGARUH KUALITAS AUDIT TERHADAP FRAUDULENT FINANCIAL REPORTING DENGAN KOMITE AUDIT SEBAGAI VARIABEL MODERASI (Studi Empiris Pada Perusahaan Manufaktur yang terdaftar di BEI tahun 2016 – 2018)

2019 ◽  
pp. 2
Author(s):  
Endah Catur Riyanti ◽  
Hanna Christina W Putri ◽  
Wikanto Artadi ◽  
Haryono Umar
Keyword(s):  
Empirical Evidence ◽  
Financial Reporting ◽  
Audit Committee ◽  
Audit Quality ◽  
Annual Report ◽  
Stock Exchange ◽  
Least Squares Regression ◽  
Fraudulent Financial Reporting ◽  
Insignificant Effect ◽  
The Impact

<p><em>This study aims to obtain empirical evidence the influence of Audit</em><em> </em><em>Quality on the Fraudulent Financial Reporting with Audit</em><em> </em><em>Com</em><em>m</em><em>ittee as a Moderating Variable in Manufacture Companies listed in Indonesia’s Stock Exchange on 2016 – 2018. This paper uses generalised least squares regression to investigate</em><em> </em><em>the influence of Audit</em><em> </em><em>Quality on the Fraudulent Financial Reporting with Audit</em><em> </em><em>Com</em><em>m</em><em>ittee as a moderating variable for a sample of </em><em>manufacturing</em><em> companies listed on </em><em>Indonesia</em><em> Stock</em><em> </em><em>Exchange over a </em><em>three</em><em>-year period from 2016 to 2018. The method of  purposive sampling is used to gain the samples. The measurement of FFR is using Real Earning Managemen</em><em>t </em><em>(Abnormal Cashflow). Audit</em><em> </em><em>Quality and Audit Com</em><em>m</em><em>ittee are analyzed from the data within annual report. The result of the research </em><em>findings show that Competence of Audit Committee has a positive insignificant effect on Fraudulent Financial Reporting. Meanwhile Audit Quality have a negative insignificant effect on Fraudulent Financial Reporting and Audit Committee strengthens positive insignificant of Audit Quality on Fraudulent Financial Reporting. </em><em>The </em><em>main contribution of this study is that it investigates Audit Committee strengthens influence of Audit Quality on Fraudulent Financial Reporting on Fraudulent Financial Reporting. Furthermore, this study is the initial paper to examine the impact of Audit Quality and Audit Committee on Fraudulent Financial Reporting in Indonesia. </em><em></em></p>

scholarly journals ANALISIS PENGARUH KEBANGKRUTAN, AUDITOR SPESIALISASI INDUSTRI DAN CORPORATE GOVERNANCE TERHADAP FRAUDULENT FINANCIAL REPORTING

2021 ◽  
Vol 18 (1) ◽  
pp. 27-51
Author(s):  
Lamoza Ressidnarry Lamoza Ressidnarry ◽  
Julianti Sjarief
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Stock Exchange ◽  
Selection Process ◽  
Sample Selection ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Fraudulent Financial Reporting ◽  
The Difference

Fraudulent financial reporting often occurs in company management. Management who has a cooperation contract with the principal, there are often differences in interests between management and shareholders. The difference in interests makes it possible for management to commit fraud. Therefore, the factors that cause fraudulent financial reporting need to be known. This study aims to examine the effect of bankruptcy, auditors specializing in industry and corporate governance (consisting of managerial ownership, number of audit committee meetings and composition of independent commissioners). The population of this research is manufacturing companies in the consumer goods industry which are listed on the Indonesia Stock Exchange 2015-2018. Based on the purposive sampling method in the sample selection process, 38 companies were obtained as samples. Hypothesis testing is carried out by logistic regression analysis using the SPSS version 21 program. The results of this study are bankruptcy, managerial ownership and the composition of independent commissioners have an effect on fraudulent financial reporting. Meanwhile, auditors specializing in industry and the number of audit committee meetings have no effect on fraudulent financial reporting.

The Audit Committee as Component of Corporate Governance

2021 ◽  
pp. 188-215
Author(s):  
Sana Masmoudi Mardessi ◽  
Yosra Makni Makni Fourati
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Theoretical Perspective ◽  
Reporting Quality ◽  
Theoretical Background ◽  
Fraudulent Financial Reporting ◽  
Corporate Governance Mechanisms ◽  
Financial Scandals ◽  
Main Component

Recently, numerous financial scandals (WorldCom, Enron, Parmalat, eToys) have shown that plentiful companies produce manipulated financial information. Consequently, regulators have prescribed corporate governance structures to protect investors and to avoid fraudulent financial reporting which are likely to control managers and limit their opportunistic behavior. Thus, there has been much debate over the extent to which corporate governance is playing a crucial role in increasing financial reporting quality from the theoretical perspective of agency theory, signaling theory, and stakeholder theory. This chapter aims at scrutinizing the internal and external mechanisms of corporate governance mainly the audit committee in the Dutch context. Firstly, the authors expose the numerous corporate governance mechanisms. Secondly, they focus on the audit committee as the main component of corporate governance, and they present the theoretical background, the role, and the characteristics of audit committee. Eventually, they exhibit the regulatory background of the Dutch context of the audit committee.

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