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 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.

scholarly journals Application of fraud pentagon in detecting financial statement fraud

2019 ◽  
Vol 6 (5) ◽  
pp. 73-80
Author(s):  
R. Daniel Eka Prasetya Antawirya ◽  
I Gusti Ayu Made Dwija Putri ◽  
I Gde Ary Wirajaya ◽  
I Gusti Ngurah Agung Suaryana ◽  
Herkulanus Bambang Suprasto
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Fraud ◽  
Study Results ◽  
Research Population ◽  
Negative Effect ◽  
Fraudulent Financial Statements

Financial statements manipulation was a fraud form which is generally difficult to detect. The study was intended to analyze fraud pentagon elements in detecting fraudulent financial statements. The research population was all financial sector companies listed on the Indonesia Stock Exchange for the 2015-2018 period. Purposive sampling technique was used to determine the research sample and data analysis techniques used multiple regression. Based on the test results, it shows the financial set has a positive positive effect on fraudulent financial statements and the number of audit committee meetings that reflect effectiveness has a negative effect on fraudulent financial statements. The study results also contribute to the fraud pentagon theory and provide evidence that elements on fraud pentagon model can be used to detect fraudulent financial statements.

scholarly journals Pengaruh Stabilitas Keuangan, Kondisi Industri dan Tekanan Eksternal Terhadap Kecurangan Laporan Keuangan

2018 ◽  
Vol 2 (1) ◽  
pp. 82
Author(s):  
Didin Ijudien
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Financial Statements ◽  
Industrial Sector ◽  
Financial Statement ◽  
Financial Statement Fraud ◽  
Purposive Sampling ◽  
Normality Test ◽  
Research Show

AbstractThe Financial Statement Fraud is an intentional mistakes aimed to deceive the users of the financial statements is ultimately detrimental to the users of the financial statements themselves. This research aims to analyze the influence of Financial Stability, Nature Of Industry and External Presure partially against the The Financial Statement Fraud on the company's industrial sector manufacturing consumer goods listed on the Indonesia stock exchange for the period 2013 up to 2016. The selection of the sample in this research was done using a purposive sampling method and retrieved 104 corporate data as sample. The data used are of financial reporting data auditan from the company published through the site www.idx.co.id and the official website of each company. Data analysis method used in this research is by using multiple linear regression. Before using regression analysis, then performed a classic assumption test first, which includes a test of normality, test multikolonieritas, autocorrelation test, and test heteroskedastisitas. Testing in this study performed using SPSS software version 23 for windows. The results of this research show that partially Financial Stability, Nature Of Industry and External Presure have no effect against the Financial Statement Fraud. Keyword: Financial Stability, Nature Of Industry, External Presure and the Financial Statement Fraud.AbstrakKecurangan laporan keuangan merupakan suatu kesalahan yang disengaja bertujuan untuk menipu para pengguna laporan keuangan yang pada akhirnya merugikan penguna laporan keuangan itu sendiri. Penelitian ini bertujuan untuk menganalisis pengaruh stabilitas keuangan, kondisi industri, dan tekanan eksternal secara parsial terhadap kecurangan laporan keuangan pada perusahaan manufaktur sektor industri barang konsumsi yang terdaftar di Bursa Efek Indonesia untuk periode 2013 sampai dengan 2016. Pemilihan sampel pada penelitian ini dilakukan dengan menggunakan metode purposive sampling dan diperoleh 104 data perusahaan sebagai sampel. Data yang digunakan adalah data laporan keuangan auditan dari perusahaan yang dipublikasikan melalui situs www.idx.co.id dan website resmi masing-masing perusahaan. Metode analisis data yang digunakan pada penelitian ini adalah dengan menggunakan regresi linear berganda. Sebelum menggunakan analisis regresi, maka dilakukan uji asumsi klasik terlebih dahulu, yang meliputi uji normalitas, uji multikolonieritas, uji autokorelasi, dan uji heteroskedastisitas. Pengujian dalam penelitian ini dilakukan dengan menggunakan software SPSS versi 23 for windows. Hasil penelitian ini menunjukkan bahwa secara parsial stabilitas keuangan, kondisi industri, dan tekanan eksternal tidak berpengaruh terhadap kecurangan laporan keuangan. Kata Kunci: Stabilitas keuangan, kondisi industri, tekanan eksternal, dan kecurangan laporan keuangan

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

Detecting financial statement fraud through new fraud diamond model: the case of Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arief Hidayatullah Khamainy ◽  
Mahrus Ali ◽  
M. Arif Setiawan
Keyword(s):  
Model Theory ◽  
Stock Exchange ◽  
Positive Influence ◽  
Financial Statement ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Content Type ◽  
Diamond Model ◽  
Negative Effect ◽  
Financial Need

Purpose The purpose of this paper is to evaluate the effect of the new fraud diamond model in explaining financial statement fraud. Design/methodology/approach The variables used to examine the factors consist of motivation, opportunity, personal integrity and capability. This research used manufactured companies listed in the Indonesia Stock Exchange of the 2015–2019 period as the population. Findings There has been a positive influence between personal financial need (OSHIP), nature of the industry (RECEIVABLE) and history of sale (SG) toward financial statement fraud, while the negative effect is found only in the effective monitoring (IND). Research limitations/implications The new fraud diamond model theory which is used as a reference in this study is a new and under-developed theory. So the author suggests that further research on this theory be carried out to strengthen the new fraud diamond model theory and ensure whether it can be used as a reference to find out the causes of financial statement fraud. In addition, the object used in this study is limited to manufacturing companies, so the author suggests that further research combine several types of companies. Originality/value The research finding supports the new fraud diamond model theory in elaborating the financial statement fraud phenomenon.

scholarly journals Detecting Fraudulent Financial Statements for the Sustainable Development of the Socio-Economy in China: A Multi-Analytic Approach

2019 ◽  
Vol 11 (6) ◽  
pp. 1579 ◽  
Author(s):  
Jianrong Yao ◽  
Yanqin Pan ◽  
Shuiqing Yang ◽  
Yuangao Chen ◽  
Yixiao Li
Keyword(s):  
Data Mining ◽  
Sustainable Development ◽  
Stepwise Regression ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Fraud ◽  
The Sustainable Development ◽  
Data Mining Techniques ◽  
Fraudulent Financial Statements

Identifying financial statement fraud activities is very important for the sustainable development of a socio-economy, especially in China’s emerging capital market. Although many scholars have paid attention to fraud detection in recent years, they have rarely focused on both financial and non-financial predictors by using a multi-analytic approach. The present study detected financial statement fraud activities based on 17 financial and 7 non-financial variables by using six data mining techniques including support vector machine (SVM), classification and regression tree (CART), back propagation neural network (BP-NN), logistic regression (LR), Bayes classifier (Bayes) and K-nearest neighbor (KNN). Specifically, the research period was from 2008 to 2017 and the sample is companies listed on the Shanghai stock exchange and Shenzhen stock exchange, with a total of 536 companies of which 134 companies were allegedly involved in fraud. The stepwise regression and principal component analysis (PCA) were also adopted for reducing variable dimensionality. The experimental results show that the SVM data mining technique has the highest accuracy across all conditions, and after using stepwise regression, 13 significant variables were screened and the classification accuracy of almost all data mining techniques was improved. However, the first 16 principal components transformed by PCA did not yield better classification results. Therefore, the combination of SVM and the stepwise regression dimensionality reduction method was found to be a good model for detecting fraudulent financial statements.

scholarly journals The Effect of Hexagon Fraud on the Potential Fraud Financial Statements with the Audit Committee as a Moderating Variable

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Agustina Riyanti ◽  
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Statements ◽  
Financial Statement ◽  
Political Connection ◽  
Financial Statement Fraud ◽  
Financial Pressure ◽  
Negative Effect ◽  
Ceo Narcissism

This study aims to obtain empirical evidence of the influence of the six elements of fraud hexagon theory on potential financial statement fraud by involving the audit committee which acts as a moderating variable in the financial statements of state- owned companies listed on the Indonesia Stock Exchange in 2016-2020. Potential financial statement fraud is measured using the f-score model. The research sample was obtained by the purposive sampling technique. Data analysis methods and techniques include descriptive statistics, evaluation of the SEM-PLS model, and hypothesis testing. The results show that financial pressure has a positive effect on potential financial statement fraud, effective monitoring has a negative effect on potential financial statement fraud, while related party transactions, CEO education, CEO narcissism, and political connection do not affect potential financial statement fraud. The role of the audit committee as a moderating variable is only able to weaken the relationship between financial pressure and potential 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 MOTIVASI BONUS PLAN DALAM FRAUDELENT FINANCIAL STATEMENT

2020 ◽  
Vol 11 (1) ◽  
Author(s):  
MF. Arrozi Adhikara
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Financial Statements ◽  
External Pressure ◽  
Financial Statement ◽  
Earning Management ◽  
Negative Effect ◽  
Fraudulent Financial Statements ◽  
Positive Effect ◽  
Bonus Plan

This study to examine the elements of fraud in the Pentagon fraud theory indetecting fraudulent financial statements. Fraud pentagon is proxied by six variables consisting of two elements of pressure (financial target and external pressure), one variable from element opportunity (ineffective monitoring), one variable from element rationalization (change in auditor), one variable from capability element (change in directors) ), and one variable from the arrogance element (number of CEO's pictures) hypothesized to affect fraudulent financial statements. F-Score is used to determine the fraudulent financial statement with bonus plan based earnings management as an intervening variable. This study with a sample of 35 companies was selected using a purposive sampling method from delisting companies in the Indonesia Stock Exchange in 20092016. Hypothesis testing uses a path analysis to test the Effects of Pressure, Opportunity, Rationalization, Competence, and Arrogance Against the Fraudulent Financial Statement with Earning Management Based on Bonus Plans as Intervening Variables on Companies Delisting on the Indonesia Stock Exchange 2009-2016.The results showed that ROA, DER, RKI had a positive effect on earnings management. While earnings management has a negative effect on fraudulent financial statements. DER and CEO have a negative effect on fraudulent financial statements and CPA has a positive effect on fraudulent financial statements. Keywords : fraudulent financial statement, pressure, opportunity,  rationalization, competence, arrogance, earning management, bonus plan

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