Testing the Fraud Pentagon theory on fraudulent financial reporting in the banking sector Indonesia 2016-2020

Irmawati, Farida and Nawirah, Nawirah (2022) Testing the Fraud Pentagon theory on fraudulent financial reporting in the banking sector Indonesia 2016-2020. AKUISISI : Jurnal Akuntansi, 18 (2). pp. 235-247. ISSN 2477-2984

Preview

Text 12832.pdf - Published Version Available under License Creative Commons Attribution. Download (419kB) | Preview

Abstract

Fraudulent financial reporting is an activity that is carried out intentionally by changing the elements in the financial statements. This study aims to examine and analyze the influence of the elements of the fraud pentagon theory, namely pressure, opportunity, rationalization, capability, and arrogance against fraudulent financial reporting which is proxied by using the Altman z-score model. This research is a quantitative research using secondary data, namely financial reports, and annual reports. The population of this study is the banking sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. The sampling method used the purposive sampling technique to 34 samples. The technique for analyzing data is through multiple linear regression. The results showed that financial stability had a positive effect on fraudulent financial reporting. External pressure has a negative effect on fraudulent financial reporting. Ineffective monitoring, quality of external audit, change in auditor, changes in the board of directors, CEO duality, and a frequent number of CEO's pictures has no effect on fraudulent financial reporting.

Item Type:	Journal Article
Keywords:	Fraud Pentagon theory; fraudulent financial reporting; Altman Z-Score
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics
Divisions:	Faculty of Economics > Department of Accounting
Depositing User:	Nawirah nn Nawirah
Date Deposited:	07 Mar 2023 09:30

Downloads

Origin of downloads

Actions (login required)

View Item