Financial statements Fraud in Banks: Implication for Board Member’ Nationality and Meetings

Abstract

This study examined the effect of foreign board member and board meeting on the likelihood of 
financial statements fraud in listed deposit money banks in Nigeria. The study further examined 
the moderating effect of board meeting on the relationship between foreign directors in the board 
and the likelihood of financial statements fraud in banks. A sample of ten (10) listed deposit money 
banks from 2014 to 2020 was conveniently selected.  Results from the binary logit regression 
revealed that foreign directors in the board have the likelihood of reducing financial statements 
fraud; while board meeting have no significant impact on the likelihood of financial statements 
fraud. The study further found that board meeting has moderating effect on the relationship 
between foreign directors in the board and the likelihood of financial statements fraud. The study 
recommends increase the number of foreign directors in their board in order to improve the board 
monitoring role.