Board Faultline and Corporate Fraud
DOI:
https://doi.org/10.54097/kxzwgz49Keywords:
board faultlines, corporate fraud, environmental uncertainty, ownership concentration.Abstract
Drawing on data analysis of Chinese A-share listed companies between 2011 and 2022, this paper examines how board faultlines affect corporate fraud. The results indicate that: (1) board faultlines have a significant inhibiting effect on corporate fraud and impede corporate fraud involving different levels of punishment; (2) A high level of environmental uncertainty can improve the cohesion of the board team. But when the first largest shareholder is in absolute control of the enterprise, the influence of the board Faultline is weakened.
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