The Effectiveness of Pentagon Fraud in Detecting Fraudulent Financial Reporting: Using the Beneish Model in Manufacturing Companies on the Indonesia Stock Exchange

DOI

10.2991/aebmr.k.210311.078How to use a DOI?

Keywords

pressure, opportunity, rationalization, capability, arrogance, fraudulent financial reporting

Abstract

This study aims to analyze the effect of pressure, opportunity, rationalization, capability, arrogance on fraudulent financial reporting. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange. The results showed that financial stability pressures, industrial conditions had a positive and significant effect on fraudulent financial reporting, while the change of directors had a significant negative effect on fraudulent financial reporting. Financial stability pressures will tend to create fraudulent financial reporting and the capability to change directors can prevent fraudulent financial reporting. Financial target pressures, external pressures, institutional ownership, effectiveness of supervision, industrial conditions, changes in auditors, total accruals and arrogance do not have a significant effect on fraudulent financial reporting.

Copyright

© 2021, 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  - Arief Himmawan Dwi Nugroho
AU  - Alfasadun
AU  - Muhammad Ardinata
AU  - Rofidah Yunita Ambarsari
PY  - 2021
DA  - 2021/03/13
TI  - The Effectiveness of Pentagon Fraud in Detecting Fraudulent Financial Reporting: Using the Beneish Model in Manufacturing Companies on the Indonesia Stock Exchange
BT  - Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020)
PB  - Atlantis Press
SP  - 389
EP  - 394
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210311.078
DO  - 10.2991/aebmr.k.210311.078
ID  - Nugroho2021
ER  -