Research Article
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Year 2021, , 385 - 409, 07.10.2021
https://doi.org/10.26650/ibr.2021.50.844527

Abstract

References

  • Banking Law No. 5411. (2005). Retrieved from https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=5411&MevzuatTur=1&MevzuatTertip=5
  • CMB. (1992). Communiqué on principles regarding record keeping and documentation in intermediary activities serial v no 6. Retrieved from http://www.cmb.gov.tr/SiteApps/Teblig/Index/o.
  • CMB. (1998). Communiqué on principles regarding capital and capital adequacy of brokerage houses. Retrieved from http://www.cmb.gov.tr/SiteApps/Teblig/Index/o.
  • CMB. (2012). Capital market law no 6362. Retrieved from http://www.cmb.gov.tr/Sayfa/Index/1/1
  • CMB. (2013a). Communiqué on principles of establishment and activities of investment firms, serial iii-39.1. Retrieved from http://www.cmb.gov.tr/SiteApps/Teblig/Index/n .
  • CMB. (2013b). Communiqué on portfolio management companies and activities of such companies, serial iii-55.1. Retrieved from http://www.cmb.gov.tr/SiteApps/Teblig/Index/n .
  • Eser, S. (2007). Kuresellesme cercevesinde Turkiye’de bankacilik ve BDDK. (Unpublished master dissertation). Dicle University Graduate School of Social Sciences, Diyarbakir.
  • PWC. (2018). Pulling fraud out of the shadows: Global economic crime and fraud survey 2018. Retrieved from https://www.pwc.com/gx/en/forensics/global-economic-crime-and-fraud-survey-2018.pdf
  • SDIF. (2020). Tarihce. Retrieved from https://www.tmsf.org.tr/en-us/Tmsf/Info/tarihce.en
  • Tax Procedure Law No. 213. (1961). Retrieved from https://www.mevzuat.gov.tr/MevzuatMetin/1.4.213.pdf.
  • Turkish Capital Markets Association. (2020a). Data. Retrieved from https://www.tspb.org.tr/wp-content/uploads/2020/06/Turkish_Capital_Markets-202006-TR.pdf
  • Turkish Capital Markets Association (2020b). Members Factsheet. Retrieved from https://www.tspb.org.tr/wp-content/uploads/2020/04/UYE_Factsheet_2020_03.xlsx
  • Turkish Criminal Code No. 5237. (2004). Retrieved from https://www.mevzuat.gov.tr/MevzuatMetin/1.5.5237.pdf
  • Wang, Y., Ashton, J.K. and Jaafar, A. (2019). Does mutual fund investment influence accounting fraud? Emerging Markets Review, 38, 142-258.
  • World Economic Forum. (2019). Why enterprise risk management is the future for banks. Retrieved from https://www.weforum.org/agenda/2019/11/why-enterprise-risk-management-is-the-future-for-banks/

Financial Statement Fraud in the Turkish Financial Services Sector

Year 2021, , 385 - 409, 07.10.2021
https://doi.org/10.26650/ibr.2021.50.844527

Abstract

Financial statement fraud is a huge obstacle to economic growth and it results in the loss of investors’ trust in the financial system. In literature, financial statement fraud detected in real sector companies is investigated thoroughly, however, financial statement fraud in financial institutions is somewhat ignored. In this article, the researcher investigates the typologies and frequencies of financial statement fraud detected by the regulator. The financial services sector framework is made up of companies like banks, intermediary institutions and portfolio management companies and the Capital Markets Board of Turkey (CMB) is the regulator and auditor for the Turkish financial services sector. The author based her research on the audit findings of CMB between 2012 and 2020. According to research results, intermediary institutions are found to be the riskiest type of institution with the majority of fraud cases and the most frequently seen type of fraud is asset misappropriation of client assets. Moreover, CMB is likely not to pursue legal allegations if the company in question is awarded a sanction according to the correlation analysis result. This article has a unique approach that combines jurisprudence and fraud cases and draws attention to financial statement fraud in the financial services sector, which is a pioneer for the Turkish economy.

References

  • Banking Law No. 5411. (2005). Retrieved from https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=5411&MevzuatTur=1&MevzuatTertip=5
  • CMB. (1992). Communiqué on principles regarding record keeping and documentation in intermediary activities serial v no 6. Retrieved from http://www.cmb.gov.tr/SiteApps/Teblig/Index/o.
  • CMB. (1998). Communiqué on principles regarding capital and capital adequacy of brokerage houses. Retrieved from http://www.cmb.gov.tr/SiteApps/Teblig/Index/o.
  • CMB. (2012). Capital market law no 6362. Retrieved from http://www.cmb.gov.tr/Sayfa/Index/1/1
  • CMB. (2013a). Communiqué on principles of establishment and activities of investment firms, serial iii-39.1. Retrieved from http://www.cmb.gov.tr/SiteApps/Teblig/Index/n .
  • CMB. (2013b). Communiqué on portfolio management companies and activities of such companies, serial iii-55.1. Retrieved from http://www.cmb.gov.tr/SiteApps/Teblig/Index/n .
  • Eser, S. (2007). Kuresellesme cercevesinde Turkiye’de bankacilik ve BDDK. (Unpublished master dissertation). Dicle University Graduate School of Social Sciences, Diyarbakir.
  • PWC. (2018). Pulling fraud out of the shadows: Global economic crime and fraud survey 2018. Retrieved from https://www.pwc.com/gx/en/forensics/global-economic-crime-and-fraud-survey-2018.pdf
  • SDIF. (2020). Tarihce. Retrieved from https://www.tmsf.org.tr/en-us/Tmsf/Info/tarihce.en
  • Tax Procedure Law No. 213. (1961). Retrieved from https://www.mevzuat.gov.tr/MevzuatMetin/1.4.213.pdf.
  • Turkish Capital Markets Association. (2020a). Data. Retrieved from https://www.tspb.org.tr/wp-content/uploads/2020/06/Turkish_Capital_Markets-202006-TR.pdf
  • Turkish Capital Markets Association (2020b). Members Factsheet. Retrieved from https://www.tspb.org.tr/wp-content/uploads/2020/04/UYE_Factsheet_2020_03.xlsx
  • Turkish Criminal Code No. 5237. (2004). Retrieved from https://www.mevzuat.gov.tr/MevzuatMetin/1.5.5237.pdf
  • Wang, Y., Ashton, J.K. and Jaafar, A. (2019). Does mutual fund investment influence accounting fraud? Emerging Markets Review, 38, 142-258.
  • World Economic Forum. (2019). Why enterprise risk management is the future for banks. Retrieved from https://www.weforum.org/agenda/2019/11/why-enterprise-risk-management-is-the-future-for-banks/
There are 15 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Articles
Authors

Lale Aslan 0000-0001-6227-0557

Publication Date October 7, 2021
Submission Date December 21, 2020
Published in Issue Year 2021

Cite

APA Aslan, L. (2021). Financial Statement Fraud in the Turkish Financial Services Sector. Istanbul Business Research, 50(2), 385-409. https://doi.org/10.26650/ibr.2021.50.844527

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