Journal ArticleDOI
Board of Director Characteristics, Institutional Ownership and Fraud: Evidence from Australia
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In this article, the authors investigate the relationship between two attributes of the board of directors, independence and duality, and fraud in the Australian context and examine whether institutional ownership plays a role in the context of fraud.Abstract:
Due to the high incidence of fraud in Australia, regulatory reports suggest strengthening the monitoring role of the board of directors (BOD). These reports recommend greater independence and no duality (chairperson of the BOD should not be the CEO) on the BOD. While there is no Australian evidence, research evidence in the U.S. supports these suggested reforms. It is not clear whether the research evidence observed in the U.S. will generalize to the Australian setting because of contextual differences. This study extends the U.S. findings to the Australian context and investigates the relationship between two attributes of the BOD, independence and duality, and fraud. In addition, I examine whether institutional ownership plays a role in the context of fraud. The more highly concentrated institutional ownership in Australia suggests the presence of some relationship. Using a matched sample of fraud and no‐fraud firms from 1988–2000, I find that as the percentage of independent directors and the percentag...read more
Citations
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Corporate governance, accounting and finance: A review
TL;DR: In this article, accounting and finance research on corporate governance (CG) is reviewed, focusing on a particularly vexing issue, namely endogeneity in the relationships between CG and other matters of concern to accounting and financial scholars, and suggest ways to deal with it.
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Internal audit, alternative internal audit structures and the level of misappropriation of assets fraud
TL;DR: In this article, the authors assess whether organizations with an internal audit function are more likely to detect and self-report fraud than those without, and they find that organizations that rely solely on outsourcing for their internal audit functions are less likely than those that undertake at least part of their internal auditing function themselves.
Journal ArticleDOI
Evidence of assurance enhancing the quality of voluntary environmental disclosures: an empirical analysis
TL;DR: In this article, the authors examined the difference in the quality of voluntary environmental disclosures when assurance is provided by either professional accountant assurers or private consultants, and found that the quality is no different when assured by accountants or consultants.
Journal ArticleDOI
The impact of corporate governance on auditor choice: Evidence from China
Z. Jun Lin,Ming Liu +1 more
TL;DR: Li et al. as mentioned in this paper investigated the determinants of firms' auditor choice in China in respect of their corporate governance mechanism, and developed a logit regression model to test the impact of firms’ internal corporate governance mechanisms on auditor choice decisions made by IPO firms getting listed during a bear market period of 2001-2004 in China.
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An Investigation of Fraud in Nonprofit Organizations: Occurrences and Deterrents:
TL;DR: In this paper, the authors used data provided by certified fraud examiners to report on the types of fraud they identified in nonprofit organizations and the characteristics of both the victims and the perpetrators of the fraudulent activities.
References
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Journal ArticleDOI
Separation of ownership and control
Eugene F. Fama,Michael C. Jensen +1 more
TL;DR: The authors argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. But they do not consider the role of decision agents in these organizations.
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Corporate Ownership Around the World
TL;DR: In this paper, the authors use data on ownership structures of large corporations in 27 wealthy economies to identify the ultimate controlling shareholders of these firms, and they find that, except in economies with very good shareholder protection, relatively few firms are widely held, in contrast to Berle and Means's image of ownership of the modern corporation.
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Agency Problems and the Theory of the Firm
TL;DR: In this article, the authors explain how the separation of security ownership and control, typical of large corporations, can be an efficient form of economic organization, and set aside the presumption that a corporation has owners in any meaningful sense.
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Large Shareholders and Corporate Control
Andrei Shleifer,Robert W. Vishny +1 more
TL;DR: In this article, the authors explore a model in which the presence of a large minority shareholder provides a partial solution to the free-rider problem in a corporation with many small owners, where the corporation may not pay any one of them to monitor the performance of the management.
Journal ArticleDOI
The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems
TL;DR: The last two decades indicate corporate internal control systems have failed to deal effectively with these changes, especially slow growth and the requirement for exit as mentioned in this paper, which is a major challenge for Western firms and political systems as these forces continue to work their way through the worldwide economy.