ASSESSING THE EFFICACY OF CORPORATE  GOVERNANCE MECHANISMS IN PREVENTING  FINANCIAL FRAUD IN MANUFACTURING  INDUSTRIES IN ANAMBRA STATE

Abunike, Uchenna Evelyn; Ilodigwe Anthonia Onyinye

Abunike, Uchenna Evelyn
Ilodigwe Anthonia Onyinye

Résumé

This study assesses the efficacy of corporate governance mechanisms in preventing financial fraud within manufacturing industries in Anambra State, Nigeria. Financial fraud poses significant risks to the economic stability of organizations, and effective corporate governance is essential in mitigating these risks. The research employs a mixed-methods approach, combining quantitative data from surveys distributed to key stakeholders in selected manufacturing firms and qualitative insights from interviews with corporate governance experts. The primary objectives of the study are to identify the existing corporate governance practices, evaluate their effectiveness in fraud prevention, and explore the challenges faced in implementing these mechanisms.The findings reveal a correlation between robust corporate governance structures—such as the presence of independent boards, effective internal controls, and transparent reporting practices—and the reduction of financial fraud incidents. However, the study also highlights several obstacles, including inadequate regulatory enforcement, a lack of awareness among stakeholders, and cultural factors that may impede the adoption of best practices in governance. Furthermore, the analysis indicates that organizations with strong ethical cultures and training programs are more likely to prevent fraudulent activities.This research contributes to the understanding of how corporate governance can be leveraged to enhance accountability and integrity in manufacturing sectors. It provides actionable recommendations for industry stakeholders and policymakers, emphasizing the need for improved training, regulatory frameworks, and ethical leadership. Ultimately, the study underscores the importance of effective corporate governance as a critical factor in safeguarding the financial integrity of manufacturing firms in Anambra State and fostering sustainable economic growth.