Jul 2026· West Science Accounting and Finance· Vol 4, pp. 141-155· 0 citations· 22 references
Abstract
This study investigates the determinants of fraudulent financial reporting in Indonesian state-owned enterprises listed on the Indonesia Stock Exchange during 2020–2024 using the fraud pentagon perspective. The study examines financial target, ineffective monitoring, rationalization, capability, and arrogance as independent variables, while fraudulent financial reporting risk is measured using the F-score model. From 24 listed firms, purposive sampling generated 21 companies with 89 final observations after outlier removal. Multiple linear regression results show that financial target has a positive and significant effect on fraudulent financial reporting. Ineffective monitoring and CEO arrogance also significantly influence fraudulent financial reporting, although both show negative coefficients in this sample. Meanwhile, auditor change and director change do not significantly affect fraudulent financial reporting. The model explains 39.1% of the variation in the F-score and is statistically significant. These findings suggest that fraud risk assessment in state-owned enterprises should emphasize profitability pressure, the quality of board oversight, and managerial communication signals rather than relying solely on governance structure, auditor rotation, or director turnover.
This study examines the influence of Fraud Heptagon elements on fraudulent financial statements in financial sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The study is motivated by the increasing prevalence of financial statement fraud cases in Indonesia's financial sector and the...
M. Rafli, Mohamad Zulman Hakim, Abduh Hafizh Rabbani et al.· International Journal of Acc...· 0 citations
Financial statement fraud can undermine the credibility of accounting information and harm stakeholders. This study aims to analyze the association between Fraud Star elements and financial statement fraud, with audit quality as a moderating variable. A quantitative approach was employed using secondary data from finan...
Background: Financial statement fraud can materially distort stakeholders' assessment of corporate performance and remains difficult to detect when managerial incentives and monitoring weaknesses coexist.
Objective: This study examined the effects of Fraud Star elements—pressure, opportunity, rationalization, capabilit...
Ibnu Aburizal Nashruddien, A. Juanda, Eko Handayanto· Journal of Business, Social...· 0 citations
This study investigates the effect of fraud on financial reporting quality and misappropriation of
assets in listed conglomerate companies in Nigeria. The research is motivated by persistent
concerns over fraudulent practices and their adverse impact on the integrity of financial reports
and internal asset control with...
Benedict Soje· Journal of Accounting and Fi...· 0 citations
This study examined the effect of the Hexagon Fraud Model in detecting fraudulent financial reporting of listed consumer and industrial goods companies in Nigeria. Specifically, the study investigated the effect of opportunity (receivables), rationalisation (accruals), and ego (directors' remuneration) on fraudulent fi...
J. Iorun, Ezekiel Sevav, P. A. Angahar et al.· Azman University Internation...· 0 citations
This study examines the effect of the Fraud Triangle (Pressure, Rationalization, Opportunity) and corporate governance mechanisms—Rights and Equitable Treatment of Shareholders, Sustainability and Resilience, Disclosure and Transparency, and Responsibility of the Board—on Financial Statement Fraud (FSF) in listed metal...
Soni Okabrian, Sinta Oktavia, Afifa Nurhanifah et al.· Golden Ratio of Finance Mana...· 0 citations
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