Volume 18, No. 6, 2021
The Influence Of Fraud Hexagon Elements On Fraudulent Financial Reporting At The Banking Companies Listed On The Indonesian Stock Exchange Periode 2018-2020
Kartika Octaviani , Efrianci Sagala , Silviana
Abstract
Fraudulent financial reporting has become a common thing that occurs in many Indonesian institutions. This research aims to detect the fraudulent in financial reporting using hexagon fraud analysis. In this research, the dependent variable is measured using the F-Score Model to set the potential for fraudulent financial reporting. The sample is selected using a purposive sampling technique, with the criteria of banking companies listed on the Indonesia Stock Exchange in 2018 - 2020 which reported their financial statements in Rupiah currency. This research uses a quantitative method supported by the logistic regression analysis technique. The hypothesis testing is done using the Wald test and the Omnibus Test of Model Coefficients. The results show that the stimulus factor proxied by financial stability (X1), personal financial needs (X2), external pressure (X3) and financial target (X4), capability factor proxied by the change in director (X5), and collusion factor proxied by e-procurement (X6), opportunity factor proxied by effective monitoring (X8), and ego factor proxied by the frequent number of CEO's Picture (X10) significantly influence the fraudulent financial statements partially or simultaneously. Meanwhile, the opportunity factor proxied by nature of the industry (X7) and rationalization factor proxied by the change in auditor (X9) does not affect the company's decision to commit fraudulent financial reporting.
Pages: 2273-2282
Keywords: Fraud Hexagon Elements, Fraudulent Financial Reporting.