ISSN 2167-0439
International Journal of Management and Business Studies ISSN: 2167-0439 Vol. 2 (3), pp. 059- 065, December, 2012. © International Scholars Journals
Full Length Research Paper
Post fraud: An empirical study of firms in Malaysia
Sherliza Puat Nelson
Department of Accounting, Kulliyyah (Faculty) of Economics and Management Sciences,
International Islamic University of Malaysia (IIUM), P.O. Box 10, 50728 Kuala Lumpur.
Corresponding Author's E-mail:[email protected]. Tel: 603 61964687. Fax: 603 61964609.
Received 28 August, 2012; Accepted 2 November, 2012
Abstract
The paper specifically examines the post fraud firms’ characteristics for over 3 years after fraud had occurred. Selections of companies were made from securities commissions’ enforcement actions released between the years 2000 until 2008. A matched pair sampling was made with the control group, and 256 firms’ observations were made. Findings revealed declining sales as well as increased in debts during the three years after the fraud for fraud firms. However, roles of block holders and board’s size may lessen the impact of fraud.
Key words: Fraud, board size, block holders, long term debt, corporate governance.