| dc.description.abstract |
Fraud is a behavior that is against the law but still occurs from year to
year with different motives. So the researcher intends to analyze and detect
fraudulent financial reporting through the fraud hexagon, which consists of
stimulus, opportunity, capability, rationalization, arrogance, and collusion. The
sample used is LQ 45 index companies listed on the Indonesia Stock Exchange for
the period 2018–2022, with a total sample of 125 obtained through a purposive
sampling technique. Researchers used quantitative descriptive research with
panel data regression analysis techniques. The analysis uses the Common Effect
Model (CEM) with the help of Eviews 12 software. The results show that the
pressure presented by financial stability has a significant effect on the potential
for fraudulent financial reporting. Meanwhile, opportunity through ineffective
monitoring, capability seen from the change of directors, rationalization seen
from the change of auditors, arrogance seen from the number of CEO photos, and
collusion seen from cooperation with government projects have no significant
effect on the potential for fraudulent financial reporting. This research can be
used as a reference for future researchers and for investors to stay away from
factors related to fraudulent financial statements. |
en_US |