Mediating effect of Chief Executive Officer Dominance on the relationship between Firm Attributes and Financial Fraud Likelihood

Abstract

This study intends to enhance our understanding of the role of firm attributes on financial fraud likelihood focusing on firm structure and corporate governance attributes. Additionally, the research highlights the underlining mediating role of Chief Executive Officer (CEO) dominance in this regard. Following the fraud triangle, our rationale is that firm structure variables such as firms’ size, leverage, earnings, financial performance amongst others provides the motive or incentive for fraud occurrence while corporate governance provides an opportunity in the presence of dominant CEOs. The methodology employed is the library research design through the review of relevant and extant literature, after which conclusion and recommendations were proffered. Based on the outcome of the review, clearly studies on financial statement fraud have not received the expected research attention in the Nigerian environment despite the topical nature of the issue. What is known about how CEO dominance affects the likelihood of financial statement fraud is still very inadequate and conflicting and hence necessitating the need for more studies in this regard. The evidence in the Nigerian environment is largely elusive and demands for more thorough research in this regard. The study recommends the need for more studies to investigate how firm attributes drive financial statement fraud likelihood in Nigerian firms and how dominant CEO’s either accelerate or decelerate this process via their mediating influence. 

Keywords: Chief Executive Officer Dominance; Firm Attributes; Financial Fraud Likelihood