ISSN: 2225-8329
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Using a sample of Chinese A-share listed firms from 2017 to 2023, this study examines the impact of board experience on financial reporting fraud. The fixed effects model was determined through the Hausman test, and robustness and endogeneity checks were conducted using the Logit model and the system GMM model. The results suggest that the board of directors’ legal, overseas, financial, and educational experiences significantly restrain financial reporting fraud, whereas multiple directorships do not exert a significant influence. Further comparison of regression coefficients and significance levels indicates that legal, financial, and overseas experiences exert the strongest constraining effects on financial reporting fraud. These findings provide empirical evidence for enterprises to enhance professionals in board recruitment and training, and enrich the application of the fraud triangle theory and upper echelons theory in the governance of financial reporting fraud.
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