BOARD COMPOSITION AND FINANCIAL STATEMENTS

ABSTRACT

This study examined the relationship between board composition and financial statements fraud among deposit money banks in Nigeria. When materially incorrect and misleading information in the financial report is proven to be there, a conflict might develop for the company in question together with its auditors and facilitator, which might also give rise to dissolution and legal action. Nonetheless, as multiple investigations have demonstrated, interested parties continue to be concerned about the information contained in accounting records. The study used a survey research design, in which initial data were collected by administering questionnaires. The secondary data came from already published works including pertinent textbooks, journals, and academic libraries. To examine the research topics, tables and a straightforward percentage technique were used in the study. However, the strength of the association between the study's variables was demonstrated by using the simple regression technique to evaluate hypotheses. The results showed a strong correlation between board size and financial statement fraud among Nigerian deposit money institutions. It was shown that among Nigerian deposit money institutions; there is a strong correlation between board diversity (women directors) and financial statements malfeasance. The makeup of audit committees and financial statements fraud in Nigerian deposit money institutions are significantly correlated. Further research found that among Nigerian deposit money institutions, board independence has a significant effect on the financial statement fraud. The study's assertion was that within Nigeria's deposit money banks, there exists a significant correlation between board composition and financial statements malfeasance. In order to minimise financial statement fraud, it was advised that deposit money institutions in Nigeria should restrict the numbers of their directors. In order to ensure gender balance deposit money banks in Nigeria must promote board diversity (women directors), which may assist in reducing the incidence of financial statements fraud among several things.