Board Composition and Corporate Fraud

Posted: 29 Jun 2004

See all articles by Hatice Uzun

Hatice Uzun

Long Island University

Samuel H. Szewczyk

Drexel University - Department of Finance

Raj Varma

University of Delaware - Department of Finance

Abstract

The study reported here examined how various characteristics of the board of directors and other governance features affected the occurrence of U.S. corporate fraud in the 1978-2001 period. The findings suggest that board composition and the structure of a board's oversight committees are significantly correlated with the incidence of corporate fraud. In the sample, as the number of independent outside directors increased on a board and in the board's audit and compensation committees, the likelihood of corporate wrongdoing decreased.

Keywords: Corporate Governance, Advocacy, Regulatory, and Legislative Issues, Regulatory and Legislative Activities

Suggested Citation

Uzun, Hatice and Szewczyk, Samuel H. and Varma, Raj, Board Composition and Corporate Fraud. Available at SSRN: https://ssrn.com/abstract=559147

Hatice Uzun

Long Island University ( email )

1 University Plaza
Brooklyn, NY 11201-6572
United States

Samuel H. Szewczyk (Contact Author)

Drexel University - Department of Finance ( email )

LeBow College of Business
Philadelphia, PA 19104
United States
215-895-1746 (Phone)

Raj Varma

University of Delaware - Department of Finance ( email )

Alfred Lerner College of Business and Economics
Newark, DE 19716
United States
302-831-1786 (Phone)
302-831-3062 (Fax)

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