Analysis of Countercyclical Policy Factors in The Era of the COVID-19 Pandemic in Financial Statement Fraud Detection of Banking Companies in Indonesia

Gatot Soepriyanto (), Meiryani, Ridho Bramulya Ikhsan and Leony Rickven
Additional contact information
Gatot Soepriyanto: Accounting Department, School of Accounting, Bina Nusantara University, Jakarta 11480, Indonesia
Meiryani: Accounting Department, School of Accounting, Bina Nusantara University, Jakarta 11480, Indonesia
Ridho Bramulya Ikhsan: Management Department, Binus Online Learning, Bina Nusantara University, Jakarta 11480, Indonesia
Leony Rickven: Accounting Department, School of Accounting, Bina Nusantara University, Jakarta 11480, Indonesia

Sustainability, 2022, vol. 14, issue 16, 1-27

Abstract: This research is motivated by the application of countercyclical policy, such as credit restructuring, by banking companies during the COVID-19 pandemic. The credit restructuring that the banks carried out had the potential to affect their financial performance and increase the tendency of financial statement manipulations. The purpose of this study is to review the significance of the changes in banks’ financial performance before and after the implementation of the credit restructuring, as well as its relationship to the potential for fraudulent financial statements. The population in this study was the financial sector companies listed on the Indonesia Stock Exchange in 2020, a total of 105 companies. The 96 samples consisted of 32 banking companies in the commercial banking category that have implemented countercyclical policies in the form of credit restructuring during the COVID-19 pandemic. The research method was a quantitative method using secondary data obtained from the official website of the Indonesia Stock Exchange and the official websites of the related companies. The results showed no significant change in the banks’ financial performance. Although the credit restructuring had an impact, such as a decrease in their profits, it did not encourage them to manipulate their financial statements.

Keywords: countercyclical policy; credit restructuring; financial statements fraud detection; Beneish M-score model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/16/10340/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/16/10340/ (text/html)

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:gam:jsusta:v:14:y:2022:i:16:p:10340-:d:892679

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().