THE EFFECT OF CEO-INFLUENCE ON CORPORATE FRAUD IN NIGERIAN DEPOSIT MONEY BANKS: A SOCIETY REFLECTION THEORY PERSPECTIVE

Mbwa Williams Adiak, Samuel Abraham Ocholi, Emmanuel Umaru Oki

Abstract


The position of the Chief Executive Officer, CEO, considered the most powerful organ in the typical corporate entity, has been alleged to be the driver of unethical corporate conduct over time. This study tests this position,with the justification of the result, in the Nigerian banking industry which has been engulfed in series of corporate frauds over the decades. Board characteristics of ten banks subjected to pair-wise comparative analysis reveals that CEO influence has significant effect on corporate fraud, manifesting in weak governance structures including board independence, nonexecutive director representation on the audit committee, largely non-existent nomination committee, and the disposition of the executive management to engage in insider-trading, despite existing reforms typified in regulatory, legislative and other institutionalised regimes. This is explained largely in terms of the society reflection theory of fraud, with recommendations made to curtail the influence of the CEO through
enhanced independence of other governance structures to be enforced by the regulatory authorities, among others mitigating the society-based factors.


Keywords


Board Characteristics, Composition, Corporate Fraud, Corporate Governance, Influence, Managerialism, Power, Society Reflection Theory.

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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