会計財務研究アカデミージャーナル

1528-2635

抽象的な

Financial Statement Fraud: Perspective of the Pentagon Fraud Model in Indonesia

Marsellisa Nindito

This study investigated the determinant factors of financial statement fraud (FSF) by employing the Fraud Pentagon model as a new approach. This study empirically examines 14 companies listed on the Indonesia Stock Exchange that incurred sanctions from the Financial Services Authority during the period 2013-2015, and 14 comparable companies as a control sample that were similar in both industry and size. This research is an explanatory research that applies logistic regression analysis to test 10 hypotheses on the effect of pressure, opportunity, rationalization, capability, and arrogance on FSF in Indonesia. The results show that free cash flow as a proxy of pressure; independence of the audit committee as a proxy of opportunity, total accruals as a proxy of rationalization, and disclosure of doubtful debts as a proxy of Capability have significant and negative effect on FSF. Those variables must be considered by external and internal auditors, investors, and those charged with governance, as well as government in their decision-making process for consideration of the occurrence of FSF.

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