Analysis Of Financial Fraud Using The Fraud Diamond Model With Corporate Governance As The Moderating Variable

DOI

10.2991/icaf-19.2019.27How to use a DOI?

Keywords

fraud, fraud triangle, fraud diamond, financial statement fraud, corporate governance, f-Score model.

Abstract

This research aims to analyze the factors that influence financial fraud. The basic theory used was Wolfe and Hermanson’s (2004)Fraud Diamond Model stating that the factors that influence financial fraud are Pressure, Opportunity, Rationalization, and Capability. The model was added with corporate governance as the main trigger for financial fraud as suggested by Gbegi, D.O and Adebisi, J. F. The research samples were manufacturing companies listed on the Indonesia Stock Exchange for the period of 2012-2014. The data used were secondary data from company annual reports. Hypothesis testing was performed by the partial least squares (PLS) method. The research results showed that external pressure and capability have effectson financial statement fraud.Financial stability, nature of industry, and rationalization have no effects on financial statement fraud. Subsequent test results verified that corporate governance has no effect on the fraud diamond model. It means that the relationship between the financial stability, nature of industry, external pressure, and capability variables and financial statement fraud is not moderated by corporate governance.

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  - Wahyu Manuhara Putra
PY  - 2019/11
DA  - 2019/11
TI  - Analysis Of Financial Fraud Using The Fraud Diamond Model With Corporate Governance As The Moderating Variable
BT  - Proceedings of the 5th International Conference on Accounting and Finance (ICAF 2019)
PB  - Atlantis Press
SP  - 163
EP  - 169
SN  - 2352-5428
UR  - https://doi.org/10.2991/icaf-19.2019.27
DO  - 10.2991/icaf-19.2019.27
ID  - Putra2019/11
ER  -