Moderating role of Islamic corporate governance between pressure, opportunity, rationalization, capability and banking fraud in Kano State Nigeria

Past studies revealed that there were complicating result dominated between the headlines of mainstream news between banking factors and bank fraud. Hence, the purpose of this study is to investigate the relationships between pressure, opportunity, rationalization, capability, and bank fraud. Filling the theoretical gap in the literature this study introduce the moderating role of Islamic corporate governance in mitigating bank fraud in selected Islamic banks in Kano, Nigeria. Cross-sectional survey design was adopted on the banks, where bank senior managers were selected as the respondents. The study employed systematic random sampling technique for data collection, with a sample size of 351 senior managers. Both descriptive and inferential statistics were used to analyze the data collected. To test the relationship, both multiple regressions and hierarchical regression techniques were used. The findings revealed that pressure and capability have significant, direct and positive relationships with bank fraud, while opportunity and rationalization are not found to be significant predictors of bank fraud in Kano Nigeria. The result of hierarchical regression, establishes that some Islamic corporate governance principles, such as Adl and transparency, moderate the relationship between the independent variables in mitigating bank fraud. The findings of this study provide important Islamic background information and fraud logistics to owner/managers of banks, policy makers, and researchers to further understand the effects of opportunity, rationalization, and capability on bank fraud. The result suggests important theoretical, practical and policy implications such as fraud diamond theory, syariah compliance and managerial support in which the inclusion of Islamic corporate governance principles could enhance the resilience of the Islamic banking system in Kano, Nigeri