Proceedings of the 6th International Accounting Conference (IAC 2017)

The Effect of Earnings Management on the Probability of Fraud and Financial Distress

Authors
Arief Kurniawan, Ancella Anitawati Hermawan
Corresponding Author
Arief Kurniawan
Available Online August 2017.
DOI
https://doi.org/10.2991/iac-17.2018.1How to use a DOI?
Keywords
Earnings management, fraud, financial distress
Abstract
The objective of this research is to examine the effect of earnings management on fraud, and its subsequent influence on the probability of financial distress. Hypothesis testing is conducted using the logistic regression method with a sample of listed companies in Indonesia Stock Exchangefrom 2009 to 2013. The sample of fraudulent companies is based on sanction decisions of the Indonesian Financial Service Authorities applied from 2009 to 2013. The results of this study show that earnings management increases the probability of fraudulent action. However, this study does not find that the increase in the probability of fraud will also increase the probability of financial distress.
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Proceedings
6th International Accounting Conference (IAC 2017)
Part of series
Advances in Economics, Business and Management Research
Publication Date
August 2017
ISBN
978-94-6252-519-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/iac-17.2018.1How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Arief Kurniawan
AU  - Ancella Anitawati Hermawan
PY  - 2017/08
DA  - 2017/08
TI  - The Effect of Earnings Management on the Probability of Fraud and Financial Distress
BT  - 6th International Accounting Conference (IAC 2017)
PB  - Atlantis Press
SP  - 1
EP  - 6
SN  - 2352-5428
UR  - https://doi.org/10.2991/iac-17.2018.1
DO  - https://doi.org/10.2991/iac-17.2018.1
ID  - Kurniawan2017/08
ER  -