Financial Statement Fraud: Evidence from Malaysian Public Listed Companies

Financial statement fraud is seen as a rampant problem around the world. Early detection one of ways to curb financial fraud, and it has motivated this study be conducted. The main objective investigate primary factors that influence public listed companies in Malaysia involved fraud. sample used comprised 40 matched with another non-financial Bursa from 2003 2020. This triangle theory form research framework develop hypotheses. Four hypotheses based on elements which are target, external pressure, earnings management, related-party transaction, have been developed tested. Regression analysis was conducted examine relationship between test results indicated targets, transaction accepted. However, pressure rejected. Interestingly, found had poorer quality year before they committed Overall, would assist auditors identifies early warning signals or red flags. Information obtained could by strong regulations encourage Malaysian enhance anti-fraud policies.