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Investigating the impact of board characteristics on money laundering: Evidence from Iranian listed companies

Shaban Mohammadi (Department of Accounting, Vocational University of Khorasan)
Hadi Saeidi (Department of Accounting, Shirvan Branch, Islamic Azad University, Shirvan, Iran)
Nader Naghshbandi (Department of Accounting, Islamic Azad University, Karaj, Iran and Department of Accounting, Hakim Nezami Institution of Higher Education, Quchan, Iran)

Journal of Money Laundering Control

ISSN: 1368-5201

Article publication date: 9 April 2020

Issue publication date: 11 December 2020

435

Abstract

Purpose

The purpose of this study is to examine the effect of board characteristics on money laundering in Iranian listed companies.

Design/methodology/approach

This was a descriptive-correlational study, and in terms of purpose, it was an applied research. The statistical population of this study was all companies listed in Tehran Stock Exchange during the years 2012-2018. A sample of 150 companies was selected by screening method. Data analysis and hypothesis testing were performed using logistic regression and Eviews 10.

Findings

The results indicated that the board bonus and CEO duality (chief executive officer duality) had a significant effect on money laundering. CEO gender also had a significant effect on money laundering.

Originality/value

Sound management of risks related to money laundering by the board of directors is associated with stability, soundness and overall health of a country's financial system, which enables the integrity of the international financial system by meeting the Basel Committee goals, including strengthening the regulations, monitoring and improving current procedures, promoting financial stability and maintaining and enhancing a good corporate reputation; however, banks and other financial institutions are exposed to more serious risks, especially the reputation risk, operational risk, etc., if management does not play an effective role in the fight against money laundering. If management considers efficient and risk-driven policies and procedures in the fight against money laundering, then many problems and losses as well as many costs, including failure to collect receivables and to bring legal proceedings, can be prevented.

Keywords

Citation

Mohammadi, S., Saeidi, H. and Naghshbandi, N. (2020), "Investigating the impact of board characteristics on money laundering: Evidence from Iranian listed companies", Journal of Money Laundering Control, Vol. 23 No. 4, pp. 751-767. https://doi.org/10.1108/JMLC-12-2019-0101

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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