EFFECT OF CORPORATE GOVERNANCE MECHANISMS ON ELECTRONIC FRAUD PREVENTION IN LISTED DEPOSIT MONEY BANKS IN NIGERIA

Sadiya Almustapha; Farouk Musa; Halidu Saidu

Authors

Almustapha Ahmed Sadiya ANAN Business School Gwarimpa, ANAN University Kwall, Plateau State Author
Musa Adeiza Farouk Department of Management Accounting, ANAN University Kwall, Plateau State Author
Saidu Ibrahim Halidu Department of Financial Reporting, ANAN University Kwall, Plateau State Author

Keywords:

Corporate Governance, Electronic Fraud Prevention, Deposit Money Banks, Board Size, Audit Committee, Institutional Shareholding, Fraud Risk Mitigation.

Abstract

This study examines the e ect of corporate governance mechanisms on electronic fraud prevention within the Nigerian listed deposit money banks. Utilizing logistic regression analysis on a dataset encompassing 12 listed banks for the period 2014 to 2023, the ÿndings reveal signiÿcant relationships between governance factors and fraud mitigation. Speciÿcally, larger board and audit committee sizes are associated with enhanced fraud prevention, attributed to increased monitoring capabilities and diverse expertise. Moreover, higher levels of institutional shareholding demonstrate a substantial positive e ect on reducing fraud risk, reŒecting the active oversight and alignment of management actions with shareholder interests. However, board independence alone does not signiÿcantly inŒuence fraud prevention, suggesting the need for complementary governance practices beyond independence. These results underscore the importance of optimizing board and committee structures, fostering institutional engagement, and integrating comprehensive governanceframeworkstoe ectivelymitigateelectronicfraudincorporatesettings.