Consequences of Financial Statement Fraud: A Developing Country Perspective

  •  Ioraver Tsegba    
  •  Jocelyn Upaa    


Using data obtained from a sample of 212 respondents drawn from professional and academic accountants in Benue State of Nigeria, we identify, in order of severity, the main consequences of financial statement fraud (FSF) from a developing country perspective. We also ascertain whether significant differences exist in the views of the respondents on what they consider as the major consequences of FSF. The results of our data analyses which document, in order of severity, loss of job, drop in market capitalization and criminal prosecution as the main consequences of FSF are consistent with our a priori expectations in a developing country. The results also reveal significant differences in the rankings of the consequences of FSF by professional and academic accountants, validating the need for bridging the knowledge gap between the dyad on the phenomenon of interest.

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