Development of a Fraud Risk Control Policy Framework for Public Sector Organizations

DOI

10.2991/apbec-18.2019.40How to use a DOI?

Keywords

Fraud; Control; Policy; Framework; Public Sector

Abstract

According to the Indonesian Statement of Financial Accounting Standard (PSAK) No. 7, “related parties” are persons or entities with important associations with the reporting entities. Therefore, related parties could significantly influence those entities. This study investigates whether institutional ownership influences transparency in terms of disclosures of related party transactions. This study introduces two types of related parties not having been addressed in previous studies: active and passive. Transparency of related-party disclosure is hypothesized to be associated with institutional ownership. Using listed Indonesian companies for the period 2012–2015, this study tests that hypothesis using a linear regression model. Empirical test results show that institutional ownership positively influences disclosures of related party transactions. However, when aggregate ownership is divided into two categories, the results differ. Passive institutional ownership shows no influence on disclosure, whereas active institutional ownership shows positive influence.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Maolana Amin Iskandar
AU  - Rafika Yuniasih
PY  - 2019/07
DA  - 2019/07
TI  - Development of a Fraud Risk Control Policy  Framework for Public Sector Organizations
BT  - Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)
PB  - Atlantis Press
SP  - 303
EP  - 312
SN  - 2352-5428
UR  - https://doi.org/10.2991/apbec-18.2019.40
DO  - 10.2991/apbec-18.2019.40
ID  - AminIskandar2019/07
ER  -