The Influences of Fraud Prevention and Benefits Incentive on Financial Information Asymmetry: Empirical Evidence from Thai-Listed Firms
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Abstract
The purposes of this research were: 1) to examine the effect of fraud prevention and its dimensions on financial information asymmetry, 2) to examine the influences of benefits incentives on financial information asymmetry, and 3) to test the mediating effects of benefits incentive that influences the relationship between fraud prevention and financial information asymmetry.
The study sample consisted of 388 Thai-listed firms. Data were collected through a survey questionnaire. Correlation Analysis, Multiple Regression Analysis, and Path Analysis were used for data analysis. The results revealed as following: 1) fraud prevention reduced financial information asymmetry, particularly the forgery dimension, 2)benefits incentive reduced financial information asymmetry, and 3) the model’s influences of fraud prevention on the reduction of financial information asymmetry through benefits incentive as mediator fit the empirical data. All effects were significant at p<0.05. This study confirmed Agency Theory that the cost of auditing and preventing fraud, and the incentive costs had triggered the agency's effort to drive for the benefits of organization and stakeholders. For the business sector, this study provided guidelines to prevent fraud and incentives to reduce opportunistic behavior of their agencies and create transparency in the organization.
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The manuscript submitted for publication must be the original version, submitted only to this particular journal with no prior acceptance for publication elsewhere in other academic journals. The manuscript must also not violate the copyright issue by means of plagiarism.
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