Fraud diamond and fraudulent financial reporting in the Nigeri-an banking industry

The study investigated the relationship between fraud diamonds and fraudulent financial reporting (FFR) in the Nigerian banking industry. The study's three specific objectives are to determine the relationship between financial target and FFR, the relationship between external pressure and FFR, and the relationship between opportunity and FFR. The dimensions of fraud diamond are the financial target, external pressure, opportunity, rationalisation, and capability, with institutional ownership as a control variable. At the same time, the measures for FFR are Real earnings Management (REM) and Accrual Earning Management (AEM). The study used an ex-post facto research design, and the population consists of thirteen (13) Deposit Money Banks (DMBs) listed on the Nigeria Stock Exchange from 2018 to 2019. Multiple regression analysis and descriptive statistics were adopted to analyse the secondary data collected using E-VIEW version 12. The findings show from the empirical evidence that external pressure is significantly related to REM and AEM, but only financial target is significantly related to REM. External pressure, rationalisation, opportunity capability, and institutional ownership are insignificantly associated with REM and AEM, but only financial targets are insignificantly related to AEM. The study implies that it will help management detect and prevent fraud in the Nigerian banking industry. Therefore, the study recommends that management give their staff realistic financial targets that are achievable to reduce excessive pressure. The study concludes that the quest for a high level of financial performance management leads to pressure and has been proven to be a motivating force that has caused individuals to commit fraud in the bank.