ABSTRACT

The study examines the influence of corporate fraud on the performance of microfinance  banks in Nigeria.  The banking sector has become one of the most critical sectors in the economy with a wide effect on the level and direction of economic growth  and transformation and on such economic variable as the  rate  of unemployment and inflation which affects the lives of our people.  This is premised on the increasing fraudulent activities and practices  in the banking sector which translate into the inability of microfinance   banks to meet the expectation of various stakeholders. This fraudulent act affects the performance and profitability

of banks and may possibly  lead to distress. The general objective of the study is to evaluate the extent to which fraudulent  act affects the performance  of microfinance banks in Nigeria. Three research questions and hypotheses were formulated for the study. A survey research method was employed. The population  of the study was limited to staff of Chibueze microfinance bank which is located at 82,Ehi/Asa Road, Aha North, Ahia, Nigeria. In this work,for the purpose of carrying outa good analysis and reaching a reasonable conclusion, the researcher obtained data from both primary and secondary sources.The data collected was analyzed using statistical package for social sciences (SPSS)version 20.0.In other to analyze and interpret appropriately the responses from  the respondent,  the parametric  and non-parametric tools were used and tested using analysis of variance (t-statistics and linear regression method) respectively.  The finding  of the study revealed that corporate fraud   has significant influence  on  bank performance    in Nigeria. Consequent   upon   this study,it  was  recommended that  there  should   be improvement   in  internal  control  system  to  enable  staff  detect  and prevent fraudulent activities.  The regulatory  and supervisory bodies of banks in Nigeria should improve their supervision  on microfinance banks using all tools including JCT banking software at their disposal  to appropriately check and curtail the incidence of fraud  in the banking industry.

  TABLE OF CONTENTS

CHAPTER ONE:INTRODUCTION

1.1 Background to the Study 1

1.2 Statement of the Problem '")

1.3 Research Objectives 4

1.4 Research Questions 4

1.5 Research Hypotheses 5

1.6 Scope of the Study 5

1.7 Significance of the Study 5

1.8 Limitations of the Study 6

1.9 Definition ofT erms 6

CHAPTER TWO:REVIEW OF RELATED LITERATURE

2.1 Conceptual Framework 8

2.1.1 Corporate Fraud 8

2.1.2 Theft and Embezzlement 9

2.1.3 Defalcation 9

2.1.4 Forgeries 10

2.1.5 Unofficial Borrowing 10

2.1.6 Foreign Exchange Malpractices 11

2.1.7 Impersonation 11

2.1.8 Manipulation of Vouchers

Chapter Three

3.6 Secondary Source of Data 38

Instrument of Data Collection 38

3.6.1 Validity of Research Instrument 39

3.6.2 Reliability of Research Instrument 39

3.7 Method of Data Analysis 40

3.8   Decision Rule                                                                                                       40

CHAPTER FOUR:  DATA PRESENTATION AND ANALYSIS

4.1     Data Presentation                                                                                                  41

4.2     Data Analysis41

4.3    Test of Hypotheses                                                                                                56

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Summary of Major Findings                                                                               62

5.2    Conclusion63

5.3       Recommendations                                                                                                  65

REFERENCES67

APPENDICES