Open AccessDeterminants of Financial Statement Fraud: Research Fraud Diamond Theory (Empirical Study on Manufacturing Company listed on the Stock Exchange)
Author(s) -
Erwin Indriyanto
Publication year - 2021
Publication title -
psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.112
H-Index - 10
ISSN - 0033-3077
DOI - 10.17762/pae.v58i1.776
Subject(s) - financial statement , stock exchange , accounting , commit , rationalization (economics) , actuarial science , nonprobability sampling , business , finance , economics , management , audit , computer science , population , demography , database , sociology
Aims of research is toassess theprobable of financial statement fraud found on the theory of the fraud diamond. The Fraud diamond describes somecomponents lead a person to commit fraud; opportunity, capability, rationalization and pressure. Researchuses Fraud Score to investigate probable of financial statements fraud. The method use purposive sampling, with criteria of financial statements of manufacturing companies classified in Indonesia Stock Exchange period in 2013-2017. Research was conducted with quantitative methods,the analysis technique used multiple regression analysis and hypothesis testing using coefficient of determination test, F test andt test. The issues ofthe reserach presented thepressure ofvariables which isreplaced by financial targets and financial stability; alsothe opportunity of the variables are replaced by nature of industry are proven to be influential and significant in distinguish potential fraudulent financial statements.