The Analysis of Fraud Pentagon Theory and Financial Distress for Detecting Fraudulent Financial Reporting in Banking Sector in Indonesia (Empirical Study of Listed Banking Companies on Indonesia Stock Exchange in 2012-2017)

摘要

This study aims to analyze the fraud pentagon theory and financial distress for detecting fraudulent financial reporting in banking companies in Indonesia listed on the Stock Exchange in 2012-2017. The sampling technique used purposive sampling with the sample of 30 companies. The hypothesis testing was done by testing multiple linear regression models which were processed using SPSS 15.0. The result shows that quality of external auditor has a positive effect on fraudulent financial reporting, change in auditor has a negative effect on fraudulent financial reporting, director change has a positive effect on fraudulent financial reporting, frequent number of CEO picture has a positive effect on fraudulent financial reporting, and financial distress has a positive effect on fraudulent financial reporting. The other variables which are financial stability and external pressure have no effect on fraudulent financial reporting.