The Impact of Insider Power on Fraudulent Financial Reporting

Journal of Management - Tập 30 - Trang 397-412 - 2004
Paul Dunn1
1Department of Accounting and Finance, Taro Hall, Brock University, St. Catharines, Ont., Canada L2S 3A1

Tóm tắt

This study examines the relationship between top management team duality and the decision to release false financial information. Using a matched sample of 103 firms that were convicted of issuing fraudulent financial statements in the period from 1992 to 1996, the results show that this form of illegal corporate behavior is more likely to occur when there is a concentration of power in the hands of insiders. For these firms, insiders control the top management team and the Board of Directors by simultaneously occupying the key managerial positions of clout within the firm while also sitting on the Board (duality), and through their ownership interest in the firm.

Tài liệu tham khảo

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Thông tin
Thông tin xuất bản

Journal of Management

Tập 30

397-412

Thông tin tác giả