scholarly journals Bankruptcy Risk Prediction in Ensuring the Sustainable Operation of Agriculture Companies

2021 ◽  
Vol 13 (14) ◽  
pp. 7712
Author(s):  
Bosiljka Srebro ◽  
Bojan Mavrenski ◽  
Vesna Bogojević Arsić ◽  
Snežana Knežević ◽  
Marko Milašinović ◽  
...  
Keyword(s):  
Emerging Markets ◽  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Annual Reports ◽  
Future Research ◽  
Manufacturing Companies ◽  
Z Score ◽  
Bankruptcy Probability ◽  
Score Model

In recent decades, predicting company bankruptcies and financial troubles has become a major concern for various stakeholders. Furthermore, because financially sustainable businesses are affected by numerous highly complex factors, both internal and external, the situation is even more complex. This paper applies Altman’s Z-score models; more precisely, the paper applies the initial Z-score model (a model for manufacturing companies), the Z′-score model (for companies operating in emerging markets), and the Z-score bankruptcy probability calculation. Therefore, this paper offers the results of the application of different Z-score models and the calculation of bankruptcy probability on a sample of agricultural companies listed on the Belgrade Stock Exchange in the period 2015–2019. In addition, different Z-score models are used for the same sample so that the difference between their results and application can be determined. In addition, the validity of the data published in the financial statements of the respective companies was confirmed using the Beneish M-score model with five and eight variables. The results obtained by applying Altman’s Z-score model (initial and adapted to emerging markets) indicate that a certain number of companies had impaired financial stability during the observed period, i.e., that they were in danger of bankruptcy. In addition, based on the results obtained using the Beneish M-score model, it was identified that a number of companies showed signals that indicate possible fraudulent financial reporting. Further, it was found that less than half of the observed companies reported on environmental protection in their annual reports, and they did so by providing a modest amount of information. The originality and value of the paper lies in suggesting that policymakers in the Serbian emerging markets should pay more attention to the operations of companies from the observed sector, as well as to their financial and non-financial reporting. Future research should focus on comparisons with agricultural companies from the same sector whose securities are listed on stock exchanges in the region.

scholarly journals FRAUDULENT FINANCIAL REPORTING: A PENTAGON FRAUD ANALYSIS

2019 ◽  
Vol 16 (2) ◽  
pp. 122-134
Author(s):  
Satria tri Nanda ◽  
Neneng Salmiah ◽  
Dina Mulyana
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Fraudulent Financial Reporting ◽  
Financial Reports ◽  
Fraudulent Financial Statements

Financial statements describe the company's financial condition. There are many gaps in the financial reports that enable management to commit fraudulent financial reporting. This study purpose to analyze the pentagon fraud, namely the pressure that is proxied by the financial target, the opportunity that is proxied by the effectiveness of monitoring (ineffective monitoring); Rationalization which is proxied by change in auditor; Competence which is proxied by the change of company directors; and Arrogance which is proxied by the number of CEO images that appear (number of CEO's picture), detects fraudulent financial statements measured using the Altman Z Score. The sample used in this study were 24 pharmaceutical sub-sector manufacturing companies registered on the Indonesia Stock Exchange during the period 2015 until 2017. The type of data used is secondary data obtained from annual reports and company financial statements for the 2015-2017 period. The analysis of the data used is multiple regression using the SPSS version 16. This study found that financial stability and ineffective monitoring influence fraudulent financial statements. Whereas auditor turnover, change of directors and the number of CEO photos that appear do not affect fraudulent financial statements.

scholarly journals The Analysis of Fraudulent Financial Reporting Determinant through Fraud Pentagon Approach

2017 ◽  
Vol 9 (2) ◽  
pp. 154-165
Author(s):  
Siska Apriliana ◽  
Linda Agustina
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Annual Reports ◽  
Fraud Triangle ◽  
Manufacturing Companies ◽  
Fraudulent Financial Reporting ◽  
Fraud Theory

The purpose of this study was to analyze the prediction of fraudulent financial reporting with the perspective of pentagon fraud. Pentagon fraud theory is the development of the theories of fraud triangle and fraud diamond. The Pentagon fraud theory adds an element of arrogance in addition to the other four existing elements namely pressure, opportunity, rationalization, and competence or capacity. The population in this study were 157 manufacturing companies listed on the Indonesia Stock Exchange (IDX) period 2013-2015. The samples of 46 companies were obtained by using purposive sampling technique, so the analysis unit was 138. Data was analyzed by using descriptive statistical analysis and logistic regression analysis. The test result showed that financial stability, the quality of external auditor, and the number of CEOs photos in the annual reports of the companies had a positive effect on the prediction of fraudulent financial reporting, while financial targets, liquidity, institutional ownership, monitoring effectiveness, replacement of external auditors, and changes of corporate directors had no significant effect on the prediction of fraudulent financial reporting. The conclusion of this study indicates that unstable financial condition, the quality of corporate audit and the level of CEO's arrogance can influence the occurrence of fraudulent financial reporting.

The Effect of Bankruptcy Possibility on Audit Delay and Timeliness (Empirical Study on Manufacturing Companies Listed in Indonesian Stock Exchange in the Period of 2012-2016)

2019 ◽  
Vol 2 (2) ◽  
pp. 118-146
Author(s):  
Triana Meinarsih ◽  
Abdul Yusuf ◽  
Muhammad Zilal Hamzah
Keyword(s):  
Quantitative Research ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Z Score ◽  
Quality Of Accounting Information ◽  
Independent Variable ◽  
A Company

Audit delay and timeliness are important factors that influence the quality of accounting information in term of relevance. This study provides empirical evidence to answer the question of how bankruptcy possibility impacts on audit delay and timeliness.  This research studies manufacturing firms listed in Indonesian Stock Exchange (IDX) in the period of 2012-2016. Data are taken from official website of IDX. This study is a quantitative research that seek to find out relationship between independent variable and dependent variable. External secondary data used are annual reports accessed from IDX website. Measurement used is Z-Score Altman model prediction, while simple linear regression is employed as technical analysis. This study finds that bankruptcy possibility which is measured by ZScore is negatively influence audit delay and timeliness. Any decrease of Z-Score shows the possibility of a company experience bankruptcy and therefore causes audit delay and timeliness.

scholarly journals Analysis of bankruptcy issues at manufacturing companies, sub-sectors of cosmetics and houseappliances registered in Indonesia Stock Exchange (IDX) year 2015-2017 using Altman Z-score

2019 ◽  
Vol 4 (01) ◽  
pp. 27
Author(s):  
Indar Khaerunnisa ◽  
Nur Anisa Rahayu
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Z Score ◽  
Marketing Performance ◽  
Grey Area ◽  
Manufacturing Company ◽  
Score Model

This research aims to figure out the level of companies bankruptcy by applying Altman Z-Score at the manufacturing companies registered in the Indonesia Stocks Exchange. The result of the research has indicated that ZScore model is applicable to detect the company’s potential bankruptcy issues, especially manufacturing company subsectors of cosmetics and houseappliances. Altman Z-Score model has classified the companies into three categories; safe, grey area and distress. Based on the result of the research, for the companies which are in the grey area category are suggested to improve their financial performance and to use the benefit of all the assets properly to get the revenue as much as possible. However, for the companies which are in the safe category are suggested to increase their performance, especially marketing performance so that they will receive bigger amount of the revenue, nevertheless, the potential of financial distress can be minimized accordingly. Keywords: manufacturing company, financial distress, Altman Z-Score.

scholarly journals FINANCIAL STATEMENT FRAUD DETECTION USING PERSPECTIVE OF FRAUD TRIANGLE ADOPTED BY SAS NO. 99

2016 ◽  
Vol 1 (2) ◽  
pp. 317 ◽  
Author(s):  
Shabrina Prasmaulida
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Cash Flows ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Financial Need

Financial statements generally aim to provide information about the company’s financial position, performance, and cash flows to the interested parties. The motivation to gain trust from the users, especially investors, shareholders and creditors, leads someone to commit fraud in the financial reporting. This study aims to detect and predict financial statement fraud based on the perspective of fraud triangle adopted by SAS No. 99. The dependent variable in this study is financial statement fraud which is proxied by earnings management, while the independent variables in this study are financial stability pressure, personal financial need, ineffective monitoring, effective monitoring, external pressure, and financial targets.Population of this research is manufacturing companies listed in Indonesia Stock Exchange period 2012 - 2014. Samples are selected using purposive sampling method and obtained 150 companies out of a total population of 162 companies. The results show that financial stability pressure and external pressurehave significant positive effect on financial statement fraud. Meanwhile, personal financial need, ineffective monitoring, effective monitoring, and financial targets do not have significant effect on financial statement fraud.

Pengaruh Prediksi Kebangkrutan Model Altman Z-Score, Reputasi Auditor dan Opinion Shopping terhadap Opini Audit Going Concern

Owner ◽  
2020 ◽  
Vol 4 (1) ◽  
pp. 343-355
Author(s):  
Muhammad Yunus ◽  
Calen Calen ◽  
Sarida Sirait
Keyword(s):  
Stock Exchange ◽  
Sampling Technique ◽  
Bankruptcy Prediction ◽  
Manufacturing Companies ◽  
Z Score ◽  
Audit Opinion ◽  
Going Concern ◽  
Opinion Shopping ◽  
Score Model ◽  
Auditor Reputation

This study aims to determine the effect of the bankruptcy prediction of the Altman z-score model, auditor reputation and opinion shopping on going concern audit opinion in manufacturing companies listed on the Indonesia Stock Exchange in 2015-2019. This research is a causal associative research with a quantitative approach. The sample in this study were 25 manufacturing companies listed on the Indonesia Stock Exchange which were determined using purposive sampling technique. Observations in this study were carried out throughout the period 2015 to 2019 so that the number of observations was 125 data. The type of data used in this study is secondary data. While the data analysis method used in this research is panel data regression analysis with statistical data processing software, namely STATA. Based on the results obtained in this study, it can be seen that the prediction of bankruptcy based on the Altman z-score model has no significant effect on going concern audit opinion on manufacturing companies listed on the Indonesia Stock Exchange. Auditor reputation is proven to have a negative and significant effect on going concern audit opinion on manufacturing companies listed on the Indonesia Stock Exchange. And opinion shopping is also proven to have a negative and significant effect on going concern audit opinion on manufacturing companies listed on the Indonesia Stock Exchange.

scholarly journals Faktor-Faktor Yang Mempengaruhi Fraudulent Financial Reporting

Akuntabilitas ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 139-152
Author(s):  
Wulanda Maya Sari ◽  
Anik Irawati
Keyword(s):  
Logistic Regression ◽  
Data Analysis ◽  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
External Pressure ◽  
Analysis Method ◽  
Fraudulent Financial Reporting ◽  
Spss Software ◽  
Score Model

This study aims to empirically prove the influence of financial stability, external pressure, and ineffective monitoring on fraudulent financial reporting. Financial stability was measured using a comparison of total assets. External pressure was measured using leverage. Meanwhile, ineffective monitoring was measured using the ratio of independent commissioners’ number. The dependent variable in this study was fraudulent financial reporting. It was measured using the F-Score Model. The sample in this study were 21 State Owned Enterprises (BUMN) listed on Indonesia Stock Exchange in period of 2017-2019. The data analysis method used in this study was Logistic Regression using SPSS software version 20. The results of this study indicate that financial stability has no influence on fraudulent financial reporting. Meanwhile, external pressure and ineffective monitoring influence fraudulent financial reporting.How to cite:Sari, W. M., & Irawati, A. (2021). Faktor-faktor yang Mempengaruhi Fraudulent Financial Reporting. Akuntabilitas: Jurnal Ilmu Akuntansi, 14(2), 139-152.

scholarly journals ANALYSIS OF THE FACTORS THAT AFFECT THE COMPANY'S ACCOUNTING CONSERVATISM

2020 ◽  
Vol 5 (2) ◽  
pp. 101
Author(s):  
Wulan Wahyuni Rossa Putri ◽  
Nilda Tartilla ◽  
M. Nofal Pamungkas
Keyword(s):  
Real Estate ◽  
Financial Reporting ◽  
Financial Distress ◽  
Stock Exchange ◽  
Secondary Data ◽  
Capital Intensity ◽  
Accounting Conservatism ◽  
Annual Reports ◽  
Construction Sector ◽  
Manufacturing Companies

Accounting conservatism is a precautionary principle in financial reporting. In this principle, it slows down the recognition of revenue and accelerates the recognition of costs so as to result in lower profits and assets, as well as high costs and debt. This study aims to determine the factors that affect accounting conservatism in the Property Real Estate and Buliding Construction sector manufacturing companies listed on the IDX.The data source used in this research is secondary data. Data is sourced from audited annual reports obtained from the IDX official website, namely www.idx.co.id. The population of this research is manufacturing companies listed on the Indonesia Stock Exchange, with research samples in the Property Real Estate and Buliding Construction sector in the 2013-2017 period. The samples were determined using purposive sampling method. The method of analysis used in this research is multiple regression with the SPSS version 25 program and hypothesis testing is done using multiple linear regression method.The results of this study indicate that leverage has no effect on accounting conservatism with a significance value of 0.554. Financial distress has no effect on accounting conservatism with a value of 0.852. Meanwhile, capital intensity has an effect on accounting conservatism with a significance value of 0.000. As well as Leverage, Financial Distress, and Capital Intensity simultaneously affect accounting conservatism.

scholarly journals ANALISIS PENGARUH FRAUD PENTAGON DALAM MENDETEKSI FRAUDULENT FINANCIAL REPORTING PADA PERUSAHAAN JASA NONKEUANGAN

2020 ◽  
Vol 12 (1) ◽  
pp. 104-124
Author(s):  
Yuliamos Tirta Wijaya Pasaribu ◽  
Synthia Madya Kusumawati ◽  
L. Jade Faliany
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
External Pressure ◽  
Annual Reports ◽  
Fraudulent Financial Reporting ◽  
Service Companies ◽  
Positive Effect

Abstract– This research aimed at analyzing the effect of fraud pentagon proxied by nine variables, namely financial stability, personal financial needs, external pressure, financial targets, ineffective monitoring, industry characteristics, auditor changes, director changes, and frequent number of CEO’s picture towards fraudulent financial reporting proxied by Beneish M-Score at non-financial service companies listed on the Indonesia Stock Exchange (IDX) period 2015-2017. The data used were secondary data obtained from annual reports and financial statements of nonfinancial service companies period 2015-2017 with a total of 285 eligible samples. The data analysis methods used were descriptive statistical analysis and logistic regression analysis. The results showed that the variables of financial stability and the nature of the industry generated a significant and positive effect on fraudulent financial reporting. Meanwhile, the variables of personal financial needs, external pressure, financial targets, ineffective monitoring, auditor changes, director changes, and often the CEO's image were not significant to fraudulent financial reporting. Keywords: Fraud Pentagon, Fradulent Financial Reporting, Beneish M-Score

scholarly journals Detecting the Likelihood of Fraudulent Financial Reporting: An Analysis of Fraud Diamond

2019 ◽  
Vol 14 (1) ◽  
pp. 43-68
Author(s):  
Reni Yendrawati ◽  
◽  
Huda Aulia ◽  
Hendi Yogi Prabowo ◽  
◽  
...  
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
External Pressure ◽  
Financial Statement ◽  
Manufacturing Companies ◽  
Fraudulent Financial Reporting ◽  
Research Findings ◽  
Pressure Factor

This paper aims to analyze the likelihood of fraudulent financial reporting using the fraud diamond analysis. Fraud diamond is a concept explaining factors that cause someone to commit fraud, namely pressure, opportunity, rationalization, and capability. In this research, pressure factor was proxied by using financial stability, external pressure, and financial target. Opportunity factor was proxied by using the nature of industry and effectiveness of monitoring. Rationalization factor was proxied by rationalization and capability was proxied by capability. This research made use of earnings management to discover the likelihood of financial statement frauds. Earnings management was measured by using F-score indicator. The population in this research were manufacturing companies listed on the Indonesian Stock Exchange (IDX) from the year 2014 – 2016. From the population, 31 companies were selected as the research samples by using the purposive sampling method. This quantitative method-using research was analyzed using multiple regression analysis and T-tests for hypotheses testing. The research findings reveal that only the opportunity variable proxied by industrial nature is proven to have an influence in detecting the likelihood of fraudulent financial reporting. In the meantime, other variables have no influence in detecting the likelihood of fraudulent financial reporting. Keywords: fraud diamond, likelihood of fraudulent financial reporting, f-score

Sign in / Sign up

Export Citation Format

Share Document