An Examination of Corporate Governance Structures and Their Role in Fraud Prevention in Plateau State
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Background of the Study
Corporate governance structures play a critical role in fraud prevention by establishing systems of accountability, transparency, and ethical practices within organizations. Effective governance involves well-defined roles for boards of directors, internal control mechanisms, and compliance frameworks that deter fraud (Adekunle & Yusuf, 2023). In Nigeria, the adoption of governance codes such as the SEC Code of Corporate Governance seeks to address fraudulent practices that undermine organizational integrity.
In Plateau State, corporate organizations are integral to economic activities, especially in sectors like mining, manufacturing, and services. However, frequent reports of fraud and financial irregularities highlight the need for an examination of the role corporate governance structures play in fraud prevention. This study seeks to assess the effectiveness of governance frameworks in mitigating fraud within organizations in Plateau State.
Statement of the Problem
Despite implementing corporate governance frameworks, many organizations in Plateau State continue to experience fraud and financial mismanagement. Weak board oversight, inadequate internal controls, and poor compliance with governance regulations contribute to these issues (Ibrahim & Musa, 2024). These challenges necessitate a critical examination of governance structures to determine their effectiveness in fraud prevention and the gaps that require intervention.
Objectives of the Study
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To evaluate the corporate governance structures employed by organizations in Plateau State.
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To assess the role of these governance structures in fraud prevention.
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To identify challenges hindering the effectiveness of governance structures in preventing fraud.
Research Questions
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What corporate governance structures are commonly employed in organizations in Plateau State?
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How effective are these governance structures in preventing fraud?
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What challenges undermine the role of governance structures in fraud prevention?
Research Hypotheses
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Corporate governance structures significantly reduce the occurrence of fraud in organizations.
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Weak governance frameworks contribute to increased fraud in Plateau State organizations.
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Effective internal controls enhance fraud prevention within corporate organizations.
Scope and Limitations of the Study
The study focuses on organizations in Plateau State, examining their corporate governance structures and their role in fraud prevention. Limitations may include restricted access to fraud-related records and the potential reluctance of respondents to disclose sensitive information.
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