Analysis of financial fraud at oil and gas holding company: fraud triangle theory perspective

Saikhu Saikhu, Djoko Suhardjanto, Agung Nur Probohudono, Wahyu Widarjo, Indrian Supheni and Isna Putri Rahmawati

Journal of Financial Crime, 2026, 1-15

Abstract: PurposeThis research aims to examine the influence of fraud triangle theory on financial fraud. Variables such as financial target, internal audit and core values were used to explain fraud triangle theory. Financial target was measured through the profit growth ratio, while internal audit was assessed based on the number of auditors. The core values were measured by the understanding score of corporate governance.Design/methodology/approachThe quantitative research method was used and secondary data were collected from the company’s annual report. The amount of data observed was 323 from 2018 to 2022 and analysis was carried out using the regression method.FindingsThe results showed that internal auditors and core value had a positive and negative effect on financial fraud, respectively. On the other hand, financial target did not affect financial fraud.Research limitations/implicationsThis research has limitations. First, the measurement of the dependent variable only showed the existence of sanctions in the company. Second, the internal audit section only showed the number, without describing the profile and competency of auditors.Practical implicationsThis research has practical implication such as company should adopt new policies, internal control procedures or employee training to strengthen an ethical culture and reduce the risk of fraud.Originality/valueThis research used an organizational unit of analysis to measure fraud through the number of sanctions on employees in the company.

Keywords: Fraud; Financial target; Internal audit; Core value (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-10-2024-0321

DOI: 10.1108/JFC-10-2024-0321

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