scholarly journals ANALISIS FRAUD DIAMOND DALAM DETERMINASI PENDETEKSIAN KECURANGAN LAPORAN KEUANGAN DENGAN FAMILY OWNERSHIP SEBAGAI VARIABEL MODERASI

2020 ◽  
Vol 2 (2) ◽  
pp. 15
Author(s):  
Devira Puri Ayu Melati ◽  
Dwi Jaya Kirana ◽  
Noegrahini Lastiningsih
Keyword(s):  
Linear Regression ◽  
Earnings Management ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Research Result ◽  
Fraud Detection ◽  
Financial Statements ◽  
Family Ownership ◽  
Regression Analyses ◽  
Fraudulent Financial Reporting

Abstract - The purpose of this research is to determine the influence of financial targets, ineffective monitoring, rationalization, and capability of fraud detection of financial statements. This research also uses family ownership as a moderation variable. The fraudulent financial reporting in this study were measured using earnings management. The population in this research is a banking company listed on the Indonesia Stock Exchange (IDX) for the period 2016-2018. The amount of samples is 123 samples for Model 1 and Model 2. The analytical methods used are multiple linear regression analyses, coesfisien determinations, simultan test (test F) and partial test (Test T) with application SPSS (Statistical Product and Service Solution) version 25th . The research result indicates that financial target, ineffective monitoring, rationalization, and capability have a significant influence on the detection of fraud financial statements and family ownership can moderate variable relationships Capability change of Directors on fraud detection of financial statements. Keywords: fraudulent financial reporting , fraud diamond, family ownership

scholarly journals Analisis Perbandingan Fraud Pentagon dengan Beneish Ratio dalam Pendeteksian Fraudulent Financial Reporting dengan Opini Audit sebagai Variabel Moderating

2021 ◽  
Vol 9 (1) ◽  
pp. 1
Author(s):  
Aris Sanulika ◽  
Wahyu Nurul Hidayati
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Secondary Data ◽  
Growth Index ◽  
Financial Statements ◽  
Fraudulent Financial Reporting ◽  
Gross Margin ◽  
Publicly Traded Companies ◽  
Asset Quality

ABSTRACTFraudulent Financial Reporting is a deliberate attempt by a company to deceive and mislead users of financial statements, especially investors and creditors, by presenting and manipulating the material value of financial statements. This study aims to determine how the auditor's opinion can moderate the comparative analysis of the pentagon fraud with the beneish ratio in the detection of fraudulent financial reporting. The type of data used in this study is comparative quantitative data. The data source in this study is secondary data. The population in this study are banking companies listed on the IDX. With a sample of 16 publicly traded companies engaged in financial and banking institutions and were listed on the Indonesia Stock Exchange in 2014-2017. The results of this study indicate that of 64 samples there were 12.5% which indicated that the financial statements had been manipulated. Auditor opinions can increase the influence of Financial Stability, external auditor quality, change in auditor, change of directors, days sales in receivables index, sales gross margin Index, Asset Quality Index, growth index, depreciation index, sales, and general administration expenses index, leverage index, total accrual to fraudulent financial reporting. Beneish Ratio affects Fraudulent Financial Reporting while Fraud Pentagon does not affect Fraudulent Financial Reporting

scholarly journals Pengaruh Kualitas Audit, Ukuran Perusahaan Dan Leverage Terhadap Manajemen Laba Pada Perusahaan Perbankan Yang Tercatat Di Bursa Efek Indonesia Tahun 2016-2018

2020 ◽  
Vol 1 (01) ◽  
pp. 56
Author(s):  
Rodhiya Maulidah ◽  
Rahmat Agus Santoso
Keyword(s):  
Linear Regression ◽  
Earnings Management ◽  
Multiple Linear Regression ◽  
Firm Size ◽  
Management Practices ◽  
Audit Quality ◽  
Stock Exchange ◽  
Financial Statements ◽  
Company Size ◽  
Earnings Information

The existence of earnings information that is needed in the financial statements can be targeted by parties who are not responsible for carrying out earnings management practices. There are several factors that can present earnings management practices, namely audit quality, company size and leverage. This study discusses the evaluation of quality, company size and leverage on earnings management in banking companies listed on the Indonesia Stock Exchange in 2016-2018. By using 117 samples of annual financial statements or financial statements of companies listed on the Indonesia Stock Exchange. Tests carried out using multiple linear regression. Regression results indicate the results of quality audits and firm size significantly influence earnings management. Meanwhile, leverage is not significant to earnings management. It is expected that the results of this study can add insight for users of financial statements to pay attention to audit quality and company size to avoid earnings management practices.

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.

Management Motive, Weak Governance, Earnings Management, and Fraudulent Financial Reporting: Malaysian Evidence

2012 ◽  
Vol 12 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Suhaily Hasnan ◽  
Rashidah Abdul Rahman ◽  
Sakthi Mahenthiran
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Financial Distress ◽  
Audit Quality ◽  
Family Ownership ◽  
Fraudulent Financial Reporting ◽  
Securities Fraud ◽  
Factors Associated ◽  
Multiple Directorships ◽  
Complete Set

ABSTRACT This study examines ten factors associated with fraudulent financial reporting (FFR) in Malaysian publicly listed companies. We hypothesize that three factors proxy for management rationalization, four factors proxy for management motives, and three factors proxy for the opportunity to commit fraud. Our sample consists of 53 fraud firms convicted of securities fraud and 53 no-fraud firms, all of which were listed on the Bursa Malaysia and have a complete set of data from 1996–2007. With regard to rationalization, we find that prior violations and founders on the board are positively and significantly associated with FFR. With regard to motive, we find that financial distress is positively and significantly associated with FFR while family ownership is negatively and significantly associated with FFR. Our opportunity for fraud proxies, multiple directorships, and audit quality are positively and significantly associated with FFR. Additionally, we find evidence of earnings management in the years leading up to FFR.

scholarly journals Tax Aggressiveness in Manufacturing Companies in Indonesia

2021 ◽  
Vol 22 (1) ◽  
Author(s):  
Fuad Hasyim ◽  
Adhi Kresna Jiwayana
Keyword(s):  
Panel Data ◽  
Linear Regression ◽  
Earnings Management ◽  
Multiple Linear Regression ◽  
Stock Exchange ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Tax Aggressiveness ◽  
Purposive Sampling ◽  
Regression Approach

This study aims to analyze the factors that influence tax aggressiveness in manufacturing companies in Indonesia. This study uses a multiple linear regression approach using panel data. Data obtained from the financial statements of manufacturing companies listed on the Indonesia Stock Exchange during 2015-2018 period. Sampling in this study was conducted by purposive sampling. The results of the study with the fixed effect approach show that the profitability variable has a significant effect on tax aggressiveness, while earnings management, leverage, and cash before the tax ratio have no effect.

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

scholarly journals COVID-19 IN INDONESIA: ANALYSIS OF DIFFERENCES EARNINGS MANAGEMENT IN THE FIRST QUARTER

2021 ◽  
Vol 11 (1) ◽  
pp. 23-32
Author(s):  
Widyaningsih Azizah
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Wilcoxon Test ◽  
Actual Condition ◽  
Financial Report ◽  
The Difference ◽  
Financial Company

The COVID-19 pandemic, which began in the first quarter (Q1) of 2020 in Indonesia, has certainly had a major impact on the company’s financial performance. The first-quarter financial report should have been able to show the actual condition of the financial company because it can be a projection for investors and analysts regarding the company’s performance in the next period. Unfortunately, many gaps in financial reporting that can provide space for management to commit earnings management. This study aims to prove the difference in earnings management in the Q1 of 2020, namely the period after the COVID-19 pandemic with the Q1 of 2019, namely the period before the COVID-19 pandemic. The data type of the research is secondary data using the financial statements of companies listed on the Indonesian Stock exchange in the Q1 of 2018, the Q1 of 2019, and the Q1 of 2020. The Q1 of 2018 is needed in this research related to the search for the Q1 of the year of 2019 data. Hypothesis testing was conducted using the Wilcoxon test with SPSS 25 software. This research has proven that there is a difference in earnings management in the Q1 of 2019, namely before the COVID-19 pandemic, and the Q1 of 2020, named after the COVID-19 pandemic. The level of earnings management during the COVID-19 pandemic represented in the Q1 of 2020 was lower than the earnings management in the period before the COVID-19 pandemic, namely in the Q1 of 2019.

scholarly journals Using Beneish M-Score and Altman Z-Score models to detect financial fraud and company failure

2021 ◽  
Vol 69 (4) ◽  
pp. 20-29
Author(s):  
Snežana Knežević ◽  
Marko Špiler ◽  
Marko Milašinović ◽  
Aleksandra Mitrović ◽  
Stefan Milojević ◽  
...  
Keyword(s):  
Financial Reporting ◽  
Financial Distress ◽  
Stock Exchange ◽  
Financial Statements ◽  
Z Score ◽  
Fraudulent Financial Reporting ◽  
Financial Decisions ◽  
Score Model ◽  
A Company

Bankruptcy is a risk that any company can face, regardless of its size. The importance of predicting a company's bankruptcy for years before its development is enormous, and it is important for financial sustainability. Financial reporting is an important platform for making financial decisions of investors and creditors. In recent years, the frequency of false financial reporting by firms has increased and there are concerns about investors' confidence in capital market. Academics and industry experts adopt a variety of risk management techniques to detect fraudulent financial reporting. A case study was applied in this paper. Based on publicly available financial data (disclosed financial statements) of a domestic textile company for the period 2017-2020, whose shares are listed on the stock exchange, a survey was conducted based on the application of Altman's Z-Score model and Beneish M-Score model. Financial distress is an important criterion to monitor when assessing the likelihood of fraud reporting. When a company is operating poorly, there is a greater motivation to engage in fraudulent financial reporting. The findings show that the results differ according to the applied method in terms of identifying the possibility of bankruptcy and the possibility of fraud in the financial statements of the observed company. The results of the study can be important to investors, auditors, regulators, bankers, tax and other government bodies.

scholarly journals ANALISIS PENGARUH FRAUD PENTAGON THEORY TERHADAP FRAUDULENT FINANCIAL REPORTING PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2014 – 2019

2021 ◽  
Vol 17 (1) ◽  
pp. 22-47
Author(s):  
Whisnu Widyatama ◽  
Loh Wenny Setiawati
Keyword(s):  
Board Of Directors ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Independent Directors ◽  
Fraudulent Financial Reporting ◽  
Ceo Duality ◽  
Economic Decisions ◽  
The World ◽  
Fraudulent Financial Statements

Fraudulent financial statements or fraudulent financial reporting are actions that cause a person or group of people to obtain certain benefits at the expense of other parties. Fraudulent financial statements themselves are the biggest cause of loss in the world.  Therefore, financial statements that are not presented reliably and are not honestly disclosed can mislead users in making economic decisions. This study aims to analyze the effect of pentagon theory fraud proxied by five variables, that are CEO duality, change of board of directors, number of independent commissioners, level of leverage, and change of auditors to fraudulent financial reporting proxied by Beneish M-Score in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2019 period. This study uses 205 observational data using logistic regression analysis. The results of this research indicate that CEO duality and the change of board of directors have a significant effect on fraudulent financial reporting, while the number of independent directors, the level of leverage, and the change of auditors do not affect fraudulent financial reporting.

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