HOW DO FINANCIAL ANALYSTS IN VIETNAM PERCEIVE THE RELATIONSHIP BETWEEN THE CORPORATE BOARD STRUCTURE AND FINANCIAL STATEMENT FRAUD?

Thanh Ngoc Bui
University of Mount Union
Pesi Amaria
Management Consultants
ABSTRACT
This study examined the perceptions of financial analysts, working in Vietnam, of the
correlation between selected twelve components of the corporate board structure in Vietnam and
financial statement fraud in Vietnam. The twelve components of corporate board structure used in
this study included: CEO not as chair of the board, stock ownership of directors, tenure of non-
executive directors, multiple directorships of executive and non-executive directors, independence
of audit committee, financial expertise of audit committee, size of audit committee, independence
of internal auditors, communication with audit committee, management stock-based
compensation, and management stock ownership. Utilizing data from six financial institutions in
Vietnam, the result of this study showed that there is a significant positive relationship between
components of corporate bard structure with regard to the financial statement fraud in Vietnam.