Analysis of Financial Statements Fraud Using the Fraud Hexagon Perspective on Family Company Nur Wakhidatur Rohmah, Lilik Andriyani, Barkah Susanto, Nur Laila Yuliani
Department of Accounting, Universitas Muhammadiyah Magelang, 56122, Indonesia
Abstract
Many frauds in the financial statements issued by companies listed on the IDX. This will certainly harm investors because they do not get accurate financial information while the company is moving because of the capital they have invested. In general, the fraud hexagon has variables of Pressure, Opportunity, and rationalization, capability, ego (arrogance), and collusion.
This study aims to analyze the effect of financial statement fraud using the fraud hexagon perspective on family firms in Manufacturing Companies Listed on the Indonesia Stock Exchange. Purposive Sampling Manufacturing Companies Listed on the Indonesia Stock Exchange, the data analysis used is normality test, multicollinearity, autocorrelation, heteroscedasticity and multiple linear regression with SPSS application.
This study resulted in financial stability, external pressure, financial targets, nature of industry, monitoring effectiveness, change in auditor, change on director, CEO duality, and political connections simultaneously or simultaneously to financial statement fraud. Observe and analyse more broadly the factors that could potentially encourage management to commit financial statement fraud
Keywords: financial statement fraud- fraud hexagon- family firm
