Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia
This study aims to detect fraudulent financial reporting using hexagon fraud analysis, including seven factors: financial stability, external pressures, ineffective monitoring, auditor changes, change in director, arrogance, and collusion. The subject of this research is a public company consolidate...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2022-01-01
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| Series: | Economies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7099/10/1/13 |
| _version_ | 1797494579995344896 |
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| author | Tarmizi Achmad Imam Ghozali Imang Dapit Pamungkas |
| author_facet | Tarmizi Achmad Imam Ghozali Imang Dapit Pamungkas |
| author_sort | Tarmizi Achmad |
| collection | DOAJ |
| description | This study aims to detect fraudulent financial reporting using hexagon fraud analysis, including seven factors: financial stability, external pressures, ineffective monitoring, auditor changes, change in director, arrogance, and collusion. The subject of this research is a public company consolidated audit report of state-owned enterprises. The existence of conflicting results, the phenomenon of fraudulent financial reporting, and limited research using the hexagon of fraud theory prompted this research to examine the factors that influence fraudulent financial reporting. The sample was selected using a sampling technique, with the criteria of state-owned enterprises listed on the Indonesia Stock Exchange in 2016–2020. The method used is quantitative, and the analytical method used is logistic regression analysis. The sampling technique used was purposeful sampling, so the number of samples was 125. The results of this study indicate that financial stability and external pressures have a positive effect on fraudulent financial reporting. However, ineffective monitoring, auditor changes, change in director, arrogance, and collusion do not affect fraudulent financial reporting. |
| first_indexed | 2024-03-10T01:36:22Z |
| format | Article |
| id | doaj.art-4f2ad10c490c4b078cfed60277d7398b |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-10T01:36:22Z |
| publishDate | 2022-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-4f2ad10c490c4b078cfed60277d7398b2023-11-23T13:32:02ZengMDPI AGEconomies2227-70992022-01-011011310.3390/economies10010013Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises IndonesiaTarmizi Achmad0Imam Ghozali1Imang Dapit Pamungkas2Department Accounting, Faculty of Economics and Business, Diponegoro University, Semarang 50275, IndonesiaDepartment Accounting, Faculty of Economics and Business, Diponegoro University, Semarang 50275, IndonesiaDepartment Accounting, Faculty of Economics and Business, Dian Nuswantoro University, Semarang 50131, IndonesiaThis study aims to detect fraudulent financial reporting using hexagon fraud analysis, including seven factors: financial stability, external pressures, ineffective monitoring, auditor changes, change in director, arrogance, and collusion. The subject of this research is a public company consolidated audit report of state-owned enterprises. The existence of conflicting results, the phenomenon of fraudulent financial reporting, and limited research using the hexagon of fraud theory prompted this research to examine the factors that influence fraudulent financial reporting. The sample was selected using a sampling technique, with the criteria of state-owned enterprises listed on the Indonesia Stock Exchange in 2016–2020. The method used is quantitative, and the analytical method used is logistic regression analysis. The sampling technique used was purposeful sampling, so the number of samples was 125. The results of this study indicate that financial stability and external pressures have a positive effect on fraudulent financial reporting. However, ineffective monitoring, auditor changes, change in director, arrogance, and collusion do not affect fraudulent financial reporting.https://www.mdpi.com/2227-7099/10/1/13financial stabilityexternal pressuresineffective monitoringarrogancecollusion |
| spellingShingle | Tarmizi Achmad Imam Ghozali Imang Dapit Pamungkas Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia Economies financial stability external pressures ineffective monitoring arrogance collusion |
| title | Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia |
| title_full | Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia |
| title_fullStr | Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia |
| title_full_unstemmed | Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia |
| title_short | Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia |
| title_sort | hexagon fraud detection of fraudulent financial reporting in state owned enterprises indonesia |
| topic | financial stability external pressures ineffective monitoring arrogance collusion |
| url | https://www.mdpi.com/2227-7099/10/1/13 |
| work_keys_str_mv | AT tarmiziachmad hexagonfrauddetectionoffraudulentfinancialreportinginstateownedenterprisesindonesia AT imamghozali hexagonfrauddetectionoffraudulentfinancialreportinginstateownedenterprisesindonesia AT imangdapitpamungkas hexagonfrauddetectionoffraudulentfinancialreportinginstateownedenterprisesindonesia |