EFEITO DA GOVERNANÇA CORPORATIVA E DO TRIÂNGULO DA FRAUDE NA PROBABILIDADE DE OCORRÊNCIA DE FRAUDES CORPORATIVAS

Abstract

The study aimed to analyze the effect of Corporate Governance and the fraud triangle on the probability of occurrence of corporate fraud. To meet the objective of the study, the research adopted a quantitative and descriptive approach, using the multinomial logit method. The sample covers 452 non-financial companies listed on B3 in the period from 2010 to 2023. The data were obtained from the open data portal of the Brazilian Securities and Exchange Commission (CVM) and Economática®. The survey results indicate that profit share and company size are significantly associated with the likelihood of fraud. The results also indicate that larger companies with high levels of profit sharing are less likely to be free of fraud, which suggests that financial incentives may play a role in the ethical behavior of companies. Thus, companies with better governance practices, even facing financial pressures or opportunities for deviation, are less likely to be involved in fraud, however, financial incentives can increase the risk of unethical behavior when not accompanied by control mechanisms. Another finding reveals that larger companies show greater capacity to mitigate fraud, highlighting the relevance of transparent organizational structures. Thus, it is concluded that corporate governance influences the elements of the fraud triangle and the occurrence of corporate fraud. The study contributes to the literature by demonstrating that corporate governance can influence the elements of the Fraud Triangle and the occurrence of fraud in Brazilian publicly traded companies. The research expands the understanding of how organizational control and transparency structures can mitigate risks of fraudulent practices, offering theoretical and practical subsidies to improve compliance and inspection policies in the financial market.