The Fraud Hexagon and Financial Statement Fraud: The Moderating Role of Independent Commissioners in Indonesian Banking Firms

Abstract

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. The study population consists of all 49 banking sector companies listed on the IDX over the four years from 2021 to 2024. A purposive sampling technique was employed. The study utilizes descriptive statistical analysis, logistic regression analysis, and Moderated Regression Analysis (MRA) with the aid of SPSS (Statistical Package for the Social Sciences) version 27.0. Based on the testing and analysis conducted, it is concluded that pressure, opportunity, rationalization, capability, arrogance, and collusion influence financial statement fraud. Furthermore, the independent board of commissioners acts as a moderator, specifically weakening the influence of the pressure, opportunity, rationalization, capability, arrogance, and collusion variables on financial statement fraud.