scholarly journals Relationship between Financial Ratio and Financial Statement Fraud Risk Moderated by Auditor Quality

2019 ◽  
Vol 8 (4) ◽  
pp. 34-43
Author(s):  
Tomy Rizky Izzalqurny ◽  
Bambang Subroto ◽  
Abdul Ghofar
Keyword(s):  
Stock Exchange ◽  
Hypothesis Test ◽  
Financial Statements ◽  
Financial Ratios ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Financial Ratio ◽  
Fraud Risk ◽  
Auditor Quality

This study was aimed to prove the research hypothesis that there are effects of financial ratios, which consist of profitability, leverage, and liquidity on the financial statements fraud risk, and the quality of auditors are able to moderate the relationship between financial ratios to financial statements fraud. This study uses a population of manufacturing companies that publish their financial statements on the Indonesian Stock Exchange in 2016-2017 will also be summarized and inferred. This study uses purposive sampling so that the study sample amounted to 275 firm years. The dependent variable uses the financial statements fraud risk with the proxy Dechow F-score. The independent variable in this study consisted of profitability with ROA ratio, leverage using the calculation of the ratio of total liabilities to total assets, and liquidity using the calculation of the ratio of total current assets to current liabilities. The moderating variable in this study is auditor quality as a moderating variable with a dummy variable. The Hypothesis test conducted is using moderated regression analysis (MRA). The results of this study indicate that the financial statements fraud risk is influenced by financial liquidity ratios, while financial ratios of profitability and leverage have not been proven to affect financial report fraud. This study provides a contribution by providing evidence that the quality of auditors can suppress fraudulent actions on financial statements with low profitability. This research provides information to regulators to pay more attention to companies that experience liquidity problems, and become input for regulators to make rules that improve the quality of auditors.

PENGARUH CURRENT RATIO, RETURN ON EQUITY DAN EARNING PER SHARE TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2010 – 2019

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Susi Lusiana
Keyword(s):  
Data Collection ◽  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Ratios ◽  
Manufacturing Companies ◽  
Current Ratio ◽  
Return On Equity ◽  
Earnings Per Share

The study of this research is to determine the effect of returning shares in manufacturing companies. This study uses the financial ratios contained in the company's financial statements. The financial ratios used in this study are the current ratio, return on equity, and earnings per share to stock returns in manufacturing companies listed on the Indonesian stock exchange in 2010-2019. This type of research used in this research is quantitative and the analytical method used is purposive sampling using SPSS 21 as many 10 manufacturing companies in the food, beverage, textile, rubber goods (tires), fisheries, and agriculture sectors. Data collection techniques are used by retrieving data through the website www.idx.co.id. The results showed that Current Ratio (CR) has a positive and significant effect on Stock Returns, Return On Equity (ROE) has a positive and significant effect on Stock Returns, and Earning Per Share (EPS) has a negative and significant effect on Stock Return.

The Determinants of Financial Ratio Disclosures and Quality: Evidence from an Emerging market

2015 ◽  
Vol 1 (1) ◽  
pp. 188 ◽  
Author(s):  
Ben k. Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Stock Exchange ◽  
Emerging Market ◽  
Negative Relationship ◽  
Ownership Concentration ◽  
Financial Ratios ◽  
Annual Reports ◽  
Executive Directors ◽  
Financial Ratio

This study investigated the influence of firm-specific characteristics which include proportion of Non-Executive Directors, ownership concentration, firm size, profitability, debt equity ratio, liquidity and leverage on the extent and quality of financial ratios disclosed by firms listed on the Ghana Stock Exchange.The research was conducted through detailed analysis of the 2012 financial statements of  the listed firms.  Descriptive analysis was performed to provide the background statistics of the variables examined.  This was followed by regression analysis which forms the main data analysis.  The results of the extent of financial ratio disclosure level, mean of 62.78%, indicate that most of the firms listed on the Ghana Stock Exchange did not overwhelmingly disclose such ratios in their annual reports.  The results of the low quality of financial ratio disclosure mean of 6.64% indicate that the disclosures failed woefully to meet the International Accounting Standards Board's qualitative characteristics of relevance, reliability, comparability and understandability.The results of the multiple regression analysis show that leverage and return on investment are associated on a statistically significant level as far as the extent of financial ratio disclosure is concerned. Board ownership concentration and proportion of (independent) non-executive directors, on the other hand were found to be statistically associated with the quality of financial ratio disclosed. There is a significant negative relationship between ownership concentration and the quality of financial ratio disclosure.  This means that under a higher level of ownership concentration less quality financial ratios are disclosed. The findings also show that there is a significant positive relationship between board composition (proportion of non-executive directors) and the quality of financial ratio disclosure.  JEL CLASSIFICATION: G3, M1, M2, M4.

scholarly journals Testing of Fraudulent Financial Statements With the Beneish M-Score Model for Manufacturing Companies Listed in the Indonesian Stock Exchange

2021 ◽  
Author(s):  
Ponny Harsanti ◽  
Ulva Rizky Mulyani
Keyword(s):  
Stock Exchange ◽  
Growth Index ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Gross Margin ◽  
Financial Condition ◽  
Score Model ◽  
Asset Quality ◽  
Fraudulent Financial Statements

Fraudulent financial statements are disclosures of a company’s financial condition which are intentionally made inaccurate by eliminating values. This study aimed to examine the effect of using the Beneish M-Score model against fraud reports of manufacturing companies listed in the Indonesian Stock Exchange in 2016 -2018. Purposive sampling was used and the sample consisted of 69 companies. The results showed that the Days Sales in Receivables Index, Gross Margin Index and Total Accrual to Total Asset had a significant positive effect on financial statement fraud, while the Asset Quality Index, Sales Growth Index, Depreciation Index, Sales General and Administrative Expenses Index, and Leverage Index did not affect fraudulent financial statements. Keywords: fraud, Beneish, logistic regression

scholarly journals Deteksi Potensi Resiko Kecurangan pada Laporan Keuangan dengan Menguji Pengaruh Kualitas Audit, Size, Leverage dan Financial target terhadap Manajemen Laba Riil

2018 ◽  
Vol 5 (2) ◽  
pp. 097-107
Author(s):  
Indarti .
Keyword(s):  
Firm Size ◽  
Audit Quality ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
Industrial Specialization ◽  
Analysis Technique ◽  
Big Four

This study is purposed to detect the potential risk of fraud in financial statements by examining the influence of audit quality, firm size, leverage, and financial target on real profit management. Audit quality in this study is measured by grouping Public Accountant Office into Big Four and Non Big Four and Auditor industrial specialization. Firm size is measured using Total Assets, Leverage and Financial Targets. The data used in this research are secondary sourced from the financial statements of manufacturing companies listed in the Indonesia Stock Exchange during 2012-2014. Using purposive sampling, there will be taken some samples to use. Data analysis method used is multiple linear regression tests using SPSS version 20. The samples selected based on purposive sampling method with population of 134 companies and a sample of 21 companies. Analysis technique methods used are descriptive statistic analysis, classical assumption test, F-statistic hypothesis test to examine the influence altogether with 5% level of accountability, and to test the partial coefficient regression, we used t-statistic test. The results show that Audit Quality, Firm Size, Leverage and Financial Targets significant.ly influence the fraud on financial statements with Real Profit Management proxy. Mean while, Audit Quality and Leverage have partial significant influences on financial statements frauds.

scholarly journals Pengaruh Pentagon Fraud Terhadap Fraudulent Financial Statement Dengan KualitasLaba Sebagai Variabel Moderasi

2020 ◽  
Vol 20 (3) ◽  
pp. 269-280
Author(s):  
Abdurrachman Abdurrachman ◽  
Suhartono Suhartono
Keyword(s):  
Stock Exchange ◽  
Earnings Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Purposive Sampling ◽  
Moderating Variables ◽  
Negative Effect ◽  
Fraudulent Financial Statements

Financial statement fraud is a serious and constructive problem for external parties of the company, especially for investors. This study aims at factors that cause false financial statements with variables as moderating variables. The factors used in this study are pentagon fraud theory which consists of variables of pressure, opportunity, rationalization, competence, and arrogance. This study uses the company in the Indonesia Stock Exchange 2016-2017 period as a research sample. Based on the results of purposive sampling obtained 204 data manufacturing companies that meet the sample. Testing the hypothesis in this study was carried out using logistic regression analysis. The results of testing the hypothesis to see the effect on fraudulent financial statements indicate that competence has a significant positive effect, pressure has a negative effect, the opportunity has no significant effect, rationalization has no significant effect, arrogance has no significant effect. In the moderating variable earnings, quality cannot weaken the influence of pressure, opportunity, rationalization, and arrogance on fraudulent financial statements, but earnings quality can weaken the influence of competence on fraudulent financial statements. Simultaneous testing shows that the overall variable has a significant effect on fraudulent financial statements. Keywords: Fraudulent Financial Statement, Pentagon Fraud   Abstrak                                                                         Kecurangan laporan keuangan merupakan masalah yang serius dan menjadi ancaman bagi pihak-pihak eksternal perusahaan, khususnya bagi investor. Beberapa penelitian mengenai faktor faktor yang berpengaruh pada fraudulent financial statement telah dilakukan. Penelitian ini bertujuan menguji kembali faktor-faktor yang mempengaruhi fraudulent financial statement dengan menambahkan kualitas laba sebagai variabel moderasi. Faktor-faktor yang diuji dalam penelitian ini adalah teori pentagon fraud yang terdiri dari variabel pressure, opportunity, rationalization, competence, dan arrogance. Penelitian ini menggunakan perusahaan manafaktur terdaftar di Bursa Efek Indonesia periode 2016-2017 sebagai sampel penelitian. Berdasarkan hasil purposive sampling diperoleh 204 data perusahaan manufaktur yang memenuhi kriteria sampel. Pengujian hipotesis dalam penelitian ini dilakukan dengan menggunakan analisis regresi logistik. Hasil pengujian hipotesis untuk melihat pengaruh terhadap fraudulent financial statement menunjukkan bahwa competence berpengaruh positif signifikan, pressure berpengaruh negatif, opportunity tidak berpengaruh signifikan, rationalization tidak berpengaruh signifikan, arrogance tidak berpengaruh signifikan. Pada variabel moderasi kualitas laba tidak dapat memperlemah pengaruh pressure, opportunity, rationalization dan arrogance terhadap fraudulent financial statement, namun kualitas laba dapat memperlemah pengaruh competence pada fraudulent financial statement. Pengujian secara simultan menunjukkan bahwa variabel secara keseluruhan berpengaruh signifikan terhadap fraudulent financial statement. Kata kunci: Fraudulent Financial Statement, Pentagon Fraud

scholarly journals The Effect of CFO Demographics on Fraudulent Financial Reporting

2020 ◽  
Vol 24 (1) ◽  
pp. 21
Author(s):  
Yulia Frischanita, Yustrida Bernawati
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Control Variable ◽  
Financial Statements ◽  
Financial Statement ◽  
Manufacturing Companies ◽  
Fraudulent Financial Reporting ◽  
Financial Statement Fraud ◽  
Negative Effect ◽  
Fraudulent Financial Statements

This study aims to examine the effect of CFO demographics on financial statement fraud. The results contribute to companies for increasing CEO and CFO elections and corporate governance designed to prevent illegal actions. The sample in this study was manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018 with 308 data and hypothesis testing using multiple regression analysis techniques. The test results show that the age of the CFO affects the fraudulent financial statements. More mature the CFO engage with fraudulent financial statements. Other results indicate that the level of education, gender and experience of the CFO have no effect on financial statement fraud. The control variable used is ROA which has a positive effect on financial statement fraud. While company size and leverage have a negative effect on financial statement fraud.

scholarly journals Determinants of Financial Statement Fraud: Research Fraud Diamond Theory (Empirical Study on Manufacturing Company listed on the Stock Exchange)

2021 ◽  
Vol 58 (1) ◽  
pp. 302-308
Author(s):  
Erwin Indriyanto Et al.
Keyword(s):  
Financial Stability ◽  
Quantitative Methods ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Coefficient Of Determination ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Analysis Technique ◽  
Research Fraud

Aims of  research is toassess theprobable of financial statement fraud found on  the theory of the fraud diamond. The Fraud diamond describes somecomponents lead a person to commit fraud; opportunity, capability, rationalization and pressure. Researchuses Fraud Score to investigate probable of financial statements fraud. The method use purposive sampling, with criteria of financial statements of manufacturing companies classified in Indonesia Stock Exchange period in 2013-2017. Research was conducted with quantitative methods,the analysis technique used multiple regression analysis and hypothesis testing using coefficient of determination test, F test andt test.  The issues ofthe reserach presented thepressure ofvariables which isreplaced by financial targets and financial stability; alsothe opportunity of the variables are replaced by nature of industry are proven to be influential and significant in distinguish potential fraudulent financial statements.

scholarly journals PERAN PROFITABILITAS DAN LIKUIDITAS SERTA DIVIDEN PAYOUT RATIO TERHADAP RETURN SAHAM

Media Trend ◽  
2016 ◽  
Vol 11 (2) ◽  
pp. 131
Author(s):  
Riawan
Keyword(s):  
Regression Analysis ◽  
Stock Returns ◽  
Capital Market ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Sampling Technique ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Significance Level

This study was conducted to examine the influence of fundamental factors of profitability and liquidity on dividend policy (DPR). And furthermore the influence of profitability, liquidity and dividend policy (DPR) to return stock in companies incorporated in the Jakarta Islamic Index listed on the Indonesia Stock Exchange for the period 2010-2013. The sampling technique used in this research is purposive sampling with criteria : (1) It is listed in Indonesia Stock Exchange 2010-2013. (2) It is always seem annual financial statements for the period 2010-2013. (3) It is always pay dividends. The data required in this study were drawn from the Indonesian Capital Market Directory (ICMD) from 2010 to 2013 consisting of 20 companies. Multiple regression analysis of the data. Hypothesis test used the t-statistic at the 5% significance level. The results showed profitability and dividend policy (DPR) have a significant effect on stock returns. These results indicate that the performance of the fundamental factors of profitability and dividend payout on stock returns are used by investors to predict stock returns manufacturing companies listed in Indonesia Stock Exchange in 2010-2013.

scholarly journals Pengujian Fraud Diamond Theory Pada Indikasi Financial Statement Fraud Di Indonesia

2020 ◽  
Vol 30 (6) ◽  
pp. 1441
Author(s):  
Ni Kadek Suparmini ◽  
Dodik Ariyanto ◽  
I Made Andika Pradnyana Wistawan
Keyword(s):  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Statements ◽  
Financial Statement ◽  
Determination Method ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Analysis Technique ◽  
Negative Effect ◽  
Financial Need

This study aims to obtain empirical evidence of fraud diamond theory. This research was conducted on manufacturing companies listed on the Indonesia Stock Exchange (BEI) for the 2015-2017 period. The sample determination method used is nonprobability sampling with purposive sampling technique. There are 145 companies as a population with a total of 66 companies as samples. The data analysis technique used is multiple linear regression. Based on the results of the analysis, it was stated that the nature of industry had a negative effect on indications of financial statement fraud while financial need, auditor firm size, and change of directors had no effect on indications of financial statement fraud. This study has implications for shareholders, regulators, or parties who use information in financial statements as a consideration in providing an assessment of the chances of fraudulent actions on the company's financial statements. Keywords: Diamond Fraud; Financial Statement Fraud.

Predicting Vietnam Listed Firms’ Financial Statement Fraud Risk

2021 ◽  
Vol 37 (1) ◽  
Author(s):  
Thuy Nguyen Thi Hong
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Listed Companies ◽  
Financial Statement ◽  
Financial Statement Fraud ◽  
Financial Leverage ◽  
Research Results ◽  
Listed Firms ◽  
Fraud Risk

Different from previous studies in Vietnam, this paper focuses on fraud risk, identifying the factors that affect the risk of financial reporting fraud of listed companies in Vietnam. Moreover, the research aims to forecast the possibility of fraudulent financial statements of listed companies in Vietnam. Based on M-score models (Beneish, 1999) and F-score model (Dechow et al., 2011), this research develops experimental results based on a sample of 307 companies with 3684 financial statements observations from 2007 to 2018. Research results show that the higher financial leverage in firms’ financial statements, the higher risk of financial statements, and the higher fraud’s tendency. Moreover, the findings also show that perennial firms, bigger firms, and listed firms, they likely to have a higher tendency of financial statement fraud. Research results show that the higher the financial leverage ratio, the more errors in reporting, the higher the tendency for fraud. At the same time, the older a business, the larger its scale and listed on the stock exchange, the more likely it is that the financial statements are fraudulent.

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