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Abstract

This paper aims to examine the effect of the fraud hexagon on fraudulent financial statements (FFS), and the audit committee (AC)'s role in moderating this relation. The research model uses logit regression with data on all non-financial companies in Indonesia ranging from 2016 to 2020, which were obtained from annual reports and Thomson Reuters. The sensitivity test uses a coefficient difference test based on the Overall Manipulation Index. This study shows that the probability of FFS is higher when the manager has the stimulus, opportunity, and capability. On the other hand, rationalization and collusion do not affect the probability of FFS. Interestingly, managers with high ego do not commit fraudulent financial reporting. The AC can minimize the stimulus, opportunity, and capability of the manager to make FFS. On the other hand, the AC cannot minimize the rationalization, ego, and collusion network of the manager. Theoretically, this study contributes to developing the situational action theory literature related to FFS and the fraud hexagon framework. This study provides academic implications that the arguments and empirical research findings that examine the behavior of managers in committing fraudulent financial reporting can be built not only based on the proxies used, but also by referring to the fraud theoretical framework.

Bahasa Abstract

Penelitian ini bertujuan untuk menguji pengaruh fraud hexagon terhadap terjadinya kecurangan laporan keuangan, serta peran komite audit memoderasi pengaruh ini. Model penelitian ini menggunakan regresi logit dengan data seluruh perusahaan non keuangan di Indonesia dari tahun 2016 hingga 2020 yang diperoleh dari annual report dan Thomson Reuters. Uji sensitivitas menggunakan uji beda koefisien berdasarkan tingkat Overall Manipulation Index. Studi ini menunjukkan bahwa probabilitas FFS lebih tinggi ketika manajer memiliki stimulus, peluang, dan kapabilitas. Di sisi lain, manajemen tidak mempertimbangkan ego, rasionalisasi dan jaringan kolusi dalam melakukan FFS. AC dapat meminimalisir stimulus, peluang, dan kapabilitas manajer untuk melakukan FFS. Di sisi lain, AC tidak dapat meminimalisir jaringan rasionalisasi, ego, dan kolusi manajemen. Secara teoritis, penelitian ini memberikan kontribusi untuk mengembangkan literatur situational action theory dan framework fraud hexagon. Studi ini memberikan implikasi akademis bahwa argumen dan temuan penelitian empiris yang mengkaji perilaku manajer untuk melakukan FFS dapat dibangun tidak hanya berdasarkan proksi yang digunakan, melainkan mengacu pada framework teori fraud.

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