Feminization of Corporate Governance Structure and Financial Statement Fraud Reduction in Nigeria’s Listed Insurance Companies
Anaeto Chinaeme Abigail, Eche Nwachukwu Austine, Akeem Adetokun
Keywords: Audit Committee, Beneish M-Score, Gender Diversity, Corporate Governance, Fraud
Abstract
This study examines the effect of corporate governance structure on financial statement fraud likelihood of listed insurance companies in Nigeria for the period 2014 to 2019. Corporate governance structure was proxied with board size, board gender diversity, audit committee meeting frequency and audit committee independence. While financial statement fraud likelihood was measured with Beneish MScore. The study employed ex post facto and causal research design, while secondary data were extracted from financial reports and accounts of the listed insurance companies. The study employed binary logistic panel regression as the technique of data analysis and it found that board gender diversity, audit committee meeting frequency and audit committee independence have significant negative effect on financial statement fraud likelihood while board size has no significant effect on financial statement fraud likelihood. The study concludes that the size of a board does not reduce financial statement fraud. However, the board gender diversity, audit committee meeting frequency and audit committee independence have significant impact in reducing financial statement fraud in Nigeria’s listed insurance companies. Consequently, for board gender diversity to significantly improve fraud reduction in Nigeria’s listed insurance companies, the focus of board size should be on the quality of the board. Thus, insurance firms in Nigeria should increase the number of female members in the board as this will increase the capacity of the board of directors to checkmate fraud. Also, audit committee should meets frequently and the number of independent members in the audit committee should be statutorily increased.
Author Biography
Anaeto Chinaeme Abigail
Department of Banking and Finance,
Air Force Institute of Technology, Kaduna
Eche Nwachukwu Austine
Department of Economics,
Air Force Institute of Technology, Kaduna
Akeem Adetokun
Department of Banking and Finance,
Air Force Institute of Technology, Kaduna