Aug 2026· International Journal of Accounting, Management, Economics and Social Sciences (IJAMESC)· 0 citations· 29 references
Abstract
Fraudulent financial statement remains a critical concern in the banking industry, given its systemic implications for investor confidence and financial stability. Grounded in fraud triangle theory, this study examines the effect of pressure on fraudulent financial statement with income smoothing as a moderating variable in Indonesian listed banks. Using a balanced panel dataset of 48 banks over the period 2022-2024 (144 observations), this study employs Panel Estimated Generalized Least Squares (EGLS) with cross-section weights and Fixed Effect Model. The findings reveal that financial stability positively and significantly influences fraudulent financial statements, while external pressure shows no significant effect. Income smoothing significantly moderates both relationships, attenuating the effect of financial stability and external pressure on fraudulent financial statements. These results extend fraud triangle theory by demonstrating that the relevance of pressure proxies is industry-contingent and that income smoothing functions as a substitutive mechanism rather than a complement to fraudulent reporting. Practically, the findings underscore the importance of asset-growth-based early warning systems for regulators and reinforce the need for stronger governance mechanisms in high-growth banking institutions.
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
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 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
This study aims to provide empirical evidence regarding the influence of the "Fraud Hexagon" framework on the detection of financial statement fraud in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2021–2024 period, with the independent board of commissioners serving as a moderating variable. T...
Ayunda Putri Permata Sari, Reni Oktavia, Yuztitya Asmaranti· ROE: Research of Economics a...· 0 citations
This study examines the effects of independent commissioners, managerial ownership, and audit committee size on financial statement fraud risk and tests whether profitability moderates those relationships in Indonesian pharmaceutical companies. The study addresses a sector-specific evidence gap by examining all three g...
Financial statement fraud remains a persistent corporate governance challenge, particularly in energy firms, where complex operations increase exposure to fraudulent reporting. This study examines the effect of fraud hexagon factors: stimulus, capabilities, opportunity, rationalization, ego, and collusion, on fraudulen...
