Analysis of Fraudulent Financial Reporting Through the Fraud Pentagon Theory
Sulvia Maulidiana, Triandi Triandi
Available Online 25 May 2020.
- https://doi.org/10.2991/aebmr.k.200522.042How to use a DOI?
- fraudulent financial reporting, fraud pentagon, pressure, rationalization
- This research was carried out because there were several cases of financial statement manipulation that were only detected after the fraud resulted in considerable losses. Fraud pentagon theory which has five elements of fraud is considered to influence the occurrence of fraudulent financial reporting. This study aims to examine how effect of each element of fraud on the pentagon fraud theory is partially and simultaneously on the occurrence of fraudulent financial reporting in mining sector companies listed on the Indonesian Stock Exchange during 2013 to 2017. The samples used were 24 mining sector publicly listed companies that listed on the Indonesian Stock Exchange during 2013-2017, with 120 observations. The data used are secondary data in the form of financial statements and company annual reports which are used as research samples. Data test equipment uses SPSS software version 22. The results of the study indicate that all independent variables (opportunity, pressure, rationalization, competence, and arrogance) simultaneously have a significant effect on fraudulent financial reporting. The results of the study also show that partially, the pressure variable proxied by external pressure and the rationalization variable proxied by the total accrual ratio proved to have a significant effect on fraudulent financial reporting.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Sulvia Maulidiana AU - Triandi Triandi PY - 2020 DA - 2020/05/25 TI - Analysis of Fraudulent Financial Reporting Through the Fraud Pentagon Theory BT - Proceedings of the 2nd International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019) PB - Atlantis Press SP - 214 EP - 219 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200522.042 DO - https://doi.org/10.2991/aebmr.k.200522.042 ID - Maulidiana2020 ER -