Analysis of the Influence of Financial Stability on Accounting Fraud (Farud) and Company Performance Improvement

DOI

10.2991/978-2-38476-112-8_9How to use a DOI?

Keywords

Financial Stability; Company Performance; Accounting Fraud

Abstract

Accounting fraud has grown in various countries, including in Indonesia. The Indonesian Accounting Association or IAI describes accounting fraud as misstatements arising from fraud in financial reporting and misstatements arising from misappropriation of assets. The tendency of accounting fraud has received a lot of public attention as a concern because accounting fraud can cause losses to other parties and provide benefits for the perpetrators. Even in Indonesia, accounting fraud has become a habit from year to year. The purpose of this study is to analyze the effect of financial stability on the tendency of accounting fraud and increase company performance in food and beverage companies listed on the Indonesia Stock Exchange. With the alleged hypothesis that financial stability has a positive effect on accounting tendencies and financial stability has an effect on company performance. The conclusions in this study are: Financial stability has a positive effect on accounting fraud, which means that the more companies that commit accounting fraud, the more unstable the company’s finances will be, where the company will feel disadvantaged and many companies will go bankrupt. 2. Financial stability has a positive effect on company performance, meaning that with good performance and away from fraud, the company will benefit, where many investors will invest but if the company has poor performance, financial stability will also decrease.

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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TY  - CONF
AU  - Eki Tiyas Nurulia
AU  - Juhary Ali
AU  - Tulus Suryanto
PY  - 2023
DA  - 2023/12/05
TI  - Analysis of the Influence of Financial Stability on Accounting Fraud (Farud) and Company Performance Improvement
BT  - Proceedings of the International Conference on Sustainability in Technological, Environmental, Law, Management, Social and Economic Matters (ICOSTELM 2022)
PB  - Atlantis Press
SP  - 76
EP  - 91
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-112-8_9
DO  - 10.2991/978-2-38476-112-8_9
ID  - Nurulia2023
ER  -