Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022)

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Hexagon Fraud: Detection of Fraudulent Financial Statement in Indonesia

Authors
Julia Rachma Handayani1, Nurcahyono Nurcahyono1, *, Nailis Saadah2, Winarsih2
1Department of Accounting, Universitas Muhammadiyah Semarang, Semarang, Indonesia
2Department of Accounting, Universitas Islam Sultan Agung, Semarang, Indonesia
*Corresponding author. Email: nurcahyo@unimus.ac.id
Corresponding Author
Nurcahyono Nurcahyono
Available Online 22 May 2023.
DOI
10.2991/978-94-6463-154-8_24How to use a DOI?
Keywords
Fradulent Financial Statement; F Score; state-owned enterprises; Hexagon Fraud
Abstract

Economic growth has positively impacted companies in Indonesia, as seen from the many companies that register their companies every year to enter the capital market. This phenomenon affects very rapid competition in the business sector and can lead to crimes, one of which is fraudulent financial reporting. This phenomenon is caused because each entity must submit accurate and relevant financial information. So it is essential to know what indicators can be used to identify fraudulent financial statements. The goal to be achieved from the results of this study is to empirically determine the effect of financial stability, several directors turnover, e-procurement, whistleblowing system, government ownership, and Frequent Number of CEO pictures on fraudulent financial statements. This study uses a quantitative approach. The population of this study is state-owned enterprises companies in 2017–2021, listed on the IDX, namely 105 companies. Using a purposive sampling technique, 21 companies were studied. The analytical method in this study is Multiple Linear Regression Analysis which is processed using the SPSS 26 application. The results show that financial stability, a director change, e-procurement, whistle-blowing systems, and government ownership positively affect fraudulent financial statements. In contrast, the frequent variable number of CEO pictures has a negative impact on financial statement fraud.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
22 May 2023
ISBN
10.2991/978-94-6463-154-8_24
ISSN
2352-5428
DOI
10.2991/978-94-6463-154-8_24How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Julia Rachma Handayani
AU  - Nurcahyono Nurcahyono
AU  - Nailis Saadah
AU  - Winarsih
PY  - 2023
DA  - 2023/05/22
TI  - Hexagon Fraud: Detection of Fraudulent Financial Statement in Indonesia
BT  - Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022)
PB  - Atlantis Press
SP  - 263
EP  - 276
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-154-8_24
DO  - 10.2991/978-94-6463-154-8_24
ID  - Handayani2023
ER  -