skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

The dark side of blockholder control: evidence from financial statement fraud cases

Journal of financial crime, 2022-05, Vol.29 (3), p.816-835 [Peer Reviewed Journal]

Emerald Publishing Limited ;Emerald Publishing Limited. ;ISSN: 1359-0790 ;EISSN: 1758-7239 ;DOI: 10.1108/JFC-05-2021-0113

Full text available

Citations Cited by
  • Title:
    The dark side of blockholder control: evidence from financial statement fraud cases
  • Author: Smaili, Nadia ; Arroyo, Paulina ; Issa, Faridath Antoinette
  • Subjects: Accounting ; Chief executive officers ; Chief financial officers ; Criminal investigations ; Financial statements ; Fraud ; Power ; Stockholders
  • Is Part Of: Journal of financial crime, 2022-05, Vol.29 (3), p.816-835
  • Description: Purpose The purpose of this study is to investigate whether large blockholders are associated with financial statement fraud at their companies. Although a substantial body of prior studies has focused on chief executive officers’ motivations to manipulate financial statements, the correlation between majority shareholders and financial statement fraud has received little attention. This paper aims to fill this gap by investigating whether the sample firms have controlling shareholders or executives (i.e. blockholders vs management) and whether financial statement fraud schemes, motivations and consequences differ between blockholder- and management-controlled firms. Design/methodology/approach Using a clinical approach, the authors Study 12 Canadian financial statement fraud cases uncovered by the Ontario Securities Commission between 1997 and 2020. Findings First, the authors find blockholder control in six cases. These findings infer that these large shareholders received private benefits at the expense of minority shareholders. The comparative analyzes suggest that fraudulent firms controlled by blockholders go bankrupt more often than those controlled by managers. The authors also find that improper disclosure is the most common fraud scheme in blockholder-controlled firms. Originality/value The authors conduct a deep analysis of financial statement fraud cases to examine the of blockholder control on the likelihood of financial statement fraud. This paper adds new insights to the research on financial crime by investigating whether large shareholders affect the probability of fraud and the extent to which they might do so.
  • Publisher: London: Emerald Publishing Limited
  • Language: English
  • Identifier: ISSN: 1359-0790
    EISSN: 1758-7239
    DOI: 10.1108/JFC-05-2021-0113
  • Source: ProQuest Central
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait