Corporate Governance and Financial Statement Fraud during the COVID-19: Study of Companies under Special Monitoring in Indonesia

Enggar Diah Puspa Arum (), Rico Wijaya, Ilham Wahyudi and Aulia Beatrice Brilliant
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Enggar Diah Puspa Arum: Accounting Department, Faculty of Economics and Business, Universitas Jambi, Jambi 36361, Indonesia
Rico Wijaya: Accounting Department, Faculty of Economics and Business, Universitas Jambi, Jambi 36361, Indonesia
Ilham Wahyudi: Accounting Department, Faculty of Economics and Business, Universitas Jambi, Jambi 36361, Indonesia
Aulia Beatrice Brilliant: Accounting Department, Faculty of Economics and Business, Universitas Jambi, Jambi 36361, Indonesia

JRFM, 2023, vol. 16, issue 7, 1-15

Abstract: The COVID-19 pandemic had a wide-ranging impact, resulting in a global recession due to weakened purchasing power. This circumstance necessitates business organizations adapting to developments and being more conscious of the risk of financial statement fraud. The intention of this research is to investigate the way corporate governance affected financial statement fraud during the COVID-19 pandemic. To acquire empirical data for examining corporate governance variables on financial statement fraud, the research was examined using quantitative methods. The study takes advantage of secondary data acquired from annual reports of companies under special monitoring listed on the Indonesia Stock Exchange of 2020–2021. The logistic regression method was used to evaluate 134 data sets, and financial statement fraud was measured using the Z-Score and F-Score models. The results indicate that when using the Z-score, only the board size has a negative effect on financial statement fraud during the COVID-19 pandemic. Meanwhile, using the F-Score, the corporate governance variables studied are not proven to have an influence on financial statement fraud during the COVID-19 pandemic.

Keywords: audit committee; internal auditor; board’s experience; board size; financial statement fraud (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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