Analysis of Factors Influencing Fraudulent Financial Statements: Pentagon Fraud Perspective and Managerial Ownership
Financial statement fraud poses a significant threat to the integrity of financial reporting and investor confidence so will become a threat to sustainability and business continuity. This study aims to analyze the factors that influence fraudulent financial statements from the perspective of the Pe...
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| Format: | Article |
| Language: | English |
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EDP Sciences
2024-01-01
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| Series: | SHS Web of Conferences |
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| Online Access: | https://www.shs-conferences.org/articles/shsconf/pdf/2024/21/shsconf_icdsa2024_01003.pdf |
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| author | Putra Wahyu Manuhara Utami Budi Barata Kusuma Islami Dian |
| author_facet | Putra Wahyu Manuhara Utami Budi Barata Kusuma Islami Dian |
| author_sort | Putra Wahyu Manuhara |
| collection | DOAJ |
| description | Financial statement fraud poses a significant threat to the integrity of financial reporting and investor confidence so will become a threat to sustainability and business continuity. This study aims to analyze the factors that influence fraudulent financial statements from the perspective of the Pentagon fraud theory and managerial ownership. The fraud pentagon model consists of financial target, financial instability, independent commissioners, receivable related party transactions, debt related party transactions, change of auditor, change of directors, number of CEO photos and adding other variable managerial ownership. The population of this research is 108 companies on the IDX for the 2011-2020 period using a purposive sampling method. The sample consists of 54 fraud companies and 54 non-fraud companies. The research results prove that receivables related party transactions and changing auditors have positive effect on financial statement fraud. Meanwhile, the variables of financial target, financial instability, independent commissioner, debt related party transactions, change of directors, number of CEO photos and managerial ownership have no effect on financial report fraud. |
| format | Article |
| id | doaj-art-983c3bf2003b4977b1ab76a00323610c |
| institution | OA Journals |
| issn | 2261-2424 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | SHS Web of Conferences |
| spelling | doaj-art-983c3bf2003b4977b1ab76a00323610c2025-08-20T02:19:16ZengEDP SciencesSHS Web of Conferences2261-24242024-01-012010100310.1051/shsconf/202420101003shsconf_icdsa2024_01003Analysis of Factors Influencing Fraudulent Financial Statements: Pentagon Fraud Perspective and Managerial OwnershipPutra Wahyu Manuhara0Utami Budi Barata Kusuma1Islami Dian2Department of Accounting, Faculty of Economics and Business, Universitas MuhammadiyahDepartment of Accounting, Faculty of Economics and Business, Universitas Ahmad DahlanDepartment of Accounting, Faculty of Economics and Business, Universitas MuhammadiyahFinancial statement fraud poses a significant threat to the integrity of financial reporting and investor confidence so will become a threat to sustainability and business continuity. This study aims to analyze the factors that influence fraudulent financial statements from the perspective of the Pentagon fraud theory and managerial ownership. The fraud pentagon model consists of financial target, financial instability, independent commissioners, receivable related party transactions, debt related party transactions, change of auditor, change of directors, number of CEO photos and adding other variable managerial ownership. The population of this research is 108 companies on the IDX for the 2011-2020 period using a purposive sampling method. The sample consists of 54 fraud companies and 54 non-fraud companies. The research results prove that receivables related party transactions and changing auditors have positive effect on financial statement fraud. Meanwhile, the variables of financial target, financial instability, independent commissioner, debt related party transactions, change of directors, number of CEO photos and managerial ownership have no effect on financial report fraud.https://www.shs-conferences.org/articles/shsconf/pdf/2024/21/shsconf_icdsa2024_01003.pdffraudulent financial statementspentagon fraud theorymanagerial ownershipfinancial reporting |
| spellingShingle | Putra Wahyu Manuhara Utami Budi Barata Kusuma Islami Dian Analysis of Factors Influencing Fraudulent Financial Statements: Pentagon Fraud Perspective and Managerial Ownership SHS Web of Conferences fraudulent financial statements pentagon fraud theory managerial ownership financial reporting |
| title | Analysis of Factors Influencing Fraudulent Financial Statements: Pentagon Fraud Perspective and Managerial Ownership |
| title_full | Analysis of Factors Influencing Fraudulent Financial Statements: Pentagon Fraud Perspective and Managerial Ownership |
| title_fullStr | Analysis of Factors Influencing Fraudulent Financial Statements: Pentagon Fraud Perspective and Managerial Ownership |
| title_full_unstemmed | Analysis of Factors Influencing Fraudulent Financial Statements: Pentagon Fraud Perspective and Managerial Ownership |
| title_short | Analysis of Factors Influencing Fraudulent Financial Statements: Pentagon Fraud Perspective and Managerial Ownership |
| title_sort | analysis of factors influencing fraudulent financial statements pentagon fraud perspective and managerial ownership |
| topic | fraudulent financial statements pentagon fraud theory managerial ownership financial reporting |
| url | https://www.shs-conferences.org/articles/shsconf/pdf/2024/21/shsconf_icdsa2024_01003.pdf |
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