Does Board Diversity Decrease Corporate Fraud? International Evidence from Family vs. Non-family Firms

Dimungu-Hewage, D and Poletti-Hughes, J (2023) Does Board Diversity Decrease Corporate Fraud? International Evidence from Family vs. Non-family Firms Review of Corporate Finance, 3 (1-2). pp. 175-211. ISSN 2693-9312, 2693-9320

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Abstract

We take the perspective that specific traits that distinguish family from non-family firms are essential for the understanding of the impact of board diversity on the likelihood of corporate fraud. Grounded on the behavioural agency theory, we argue that family firms are more likely to commit fraud than non-family firms possibly because of the aim to preserve socioemotional wealth and the weakness of regulatory systems (i.e., in the Latin American region). We find that family firms can offset such frailties by diversifying the board of directors (i.e., gender, education and tenure of independent directors), and such opportunities for diversity increase with board size but decrease with experienced boards.

Item Type:	Article
Uncontrolled Keywords:	35 Commerce, Management, Tourism and Services, 3502 Banking, Finance and Investment, 3507 Strategy, Management and Organisational Behaviour, 50 Philosophy and Religious Studies, 5001 Applied Ethics
Divisions:	Faculty of Humanities & Social Sciences > School of Management
Depositing User:	Symplectic Admin
Date Deposited:	14 Mar 2022 16:52
Last Modified:	22 Jan 2026 13:33
DOI:	10.1561/114.00000039
Related Websites:	Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3150784
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