Hexagon Fraud: Detection of Fraudulent Financial Statement in Indonesia

Julia Rachma Handayani, Nurcahyono Nurcahyono (), Nailis Saadah and Winarsih
Additional contact information
Julia Rachma Handayani: Universitas Muhammadiyah Semarang, Department of Accounting
Nurcahyono Nurcahyono: Universitas Muhammadiyah Semarang, Department of Accounting
Nailis Saadah: Universitas Islam Sultan Agung, Department of Accounting
Winarsih: Universitas Islam Sultan Agung, Department of Accounting

A chapter in Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022), 2023, pp 263-276 from Springer

Abstract: Abstract Economic growth has positively impacted companies in Indonesia, as seen from the many companies that register their companies every year to enter the capital market. This phenomenon affects very rapid competition in the business sector and can lead to crimes, one of which is fraudulent financial reporting. This phenomenon is caused because each entity must submit accurate and relevant financial information. So it is essential to know what indicators can be used to identify fraudulent financial statements. The goal to be achieved from the results of this study is to empirically determine the effect of financial stability, several directors turnover, e-procurement, whistleblowing system, government ownership, and Frequent Number of CEO pictures on fraudulent financial statements. This study uses a quantitative approach. The population of this study is state-owned enterprises companies in 2017–2021, listed on the IDX, namely 105 companies. Using a purposive sampling technique, 21 companies were studied. The analytical method in this study is Multiple Linear Regression Analysis which is processed using the SPSS 26 application. The results show that financial stability, a director change, e-procurement, whistle-blowing systems, and government ownership positively affect fraudulent financial statements. In contrast, the frequent variable number of CEO pictures has a negative impact on financial statement fraud.

Keywords: Fradulent Financial Statement; F Score; state-owned enterprises; Hexagon Fraud (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-154-8_24

Ordering information: This item can be ordered from
http://www.springer.com/9789464631548

DOI: 10.2991/978-94-6463-154-8_24

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().