Fraudulent Financial Reporting Reviewed from The Perspective of Hexagon Fraud Theory: A Study of Companies Received Special Notation from BEI
DOI:
https://doi.org/10.30595/kompartemen.v23i1.24419Keywords:
Financial Reporting, Fraudulent Financial Reporting, Hexagon Fraud TheoryAbstract
Fraudulent financial reporting remains a threat to the integrity of global capital markets, undermining investor confidence and causing significant financial losses. This study investigates the factors that influence fraudulent financial reporting using the Hexagon Fraud Theory as a theoretical framework. Data were collected from 138 companies listed on the Indonesia Stock Exchange that received special notation in 2023. The independent variables used are stimulus/pressure, competence/capability, collusion, opportunity, rationalization, and ego/arrogance. This study uses a quantitative approach with multiple regression analysis. The findings show that opportunity is positively correlated with fraudulent financial reporting, stimulus/pressure shows a negative effect. Conversely, competence/ capability, collusion, rationalization, and ego/arrogance do not affect fraudulent financial reporting. These results highlight the complex interaction between internal and external pressures in organizations and emphasize the need for strong internal controls to reduce the risk of fraudulent financial reporting.
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