Factors Influencing in the Fraudulent Financial Reporting

Muhammad Burhanudin Arifin, Andrian Budi Prasetyo


Fraudulent practice in financial report has resulted in the decrease of reliablity in financial report, causing losses for investors and creditors. The population used in this study are all listed on the Indonesia Stock Exchange (BEI) throughout 2010-2016. The sampling method used is purposive sampling. The number of samples used is 52 companies, consisting of 26 fraud companies obtained from the database of sanctioned misstatement of financial reporting issued by OJK during 2010-2016 period and 26 non-fruad companies with the same size determined under OJK regulation No. POJK.04 about Statement of Registration in the Public Offering and Capital Addition by Granting Right of Priority Effect by Companies with Small Scale Assets or Companies with Medium Scale Assets. This study used logistic regression analysis to examine the research hypothesis. The results of this study indicate that financial leverage and asset composition ratio have positive effect on the possibility of fraudulent financial reporting. Meanwhile, the profitability, liquidity, capital turnover, and receivable turnover ratio have negative effect on the possibility of fraudulent financial reporting .


financial leverage ratio, profitabilty ratio, asset composition ratio, liquidity ratio, capital turnover tatio, receivable turnover ratio, fraudulent financial reporting

Full Text:



Abbas, D. S. “Pengaruh Current Ratio, Account Receivable Turnover, Inventory Turnover, Total Asset Turnover dan Debt To Equity terhadap Return on Assetâ€. Skripsi pada Program Sarjana Ekonomi, Universitas Muhammadiyah, Tangerang, 2017, p. 57.

Albrecht, W. S., Albrecht, C., & Albrecht, C. C. (2008). Current Trends in Fraud and its Detection. Information Security Journal: A Global Perspective, 17 (1), 2–12.

Altman, E. I. (1968). Financial Ratios, Discriminant Analysis and The Prediction of Corporate Bankruptcy. The Journal of Finance, 23 (4), 589–609.

Arens, A. A., Elder, R. J., & Beasley, M. S. (2012). Auditing and Assurance Service: An Integrated Approach (14th ed.). Upper Saddle River: Prentice Hall.

Ettredge, M., Scholz, S., Smith, K. R., & Sun, L. (2010). How do restatements begin? Evidence of earnings management preceding restated financial reports. Journal of Business Finance and Accounting, 37 (3–4), 332–355.

Fanning, K. M., & Cogger, K. O. (1998). Neural network detection of management fraud using published financial data. International Journal of Intelligent Systems in Accounting, Finance & Management, 7 (1), 21–41.

Hanifa, S. I., & Laksito, H. (2015). Pengaruh Fraud Indicators terhadap Fraudulent Financial Statement : Studi Empiris pada Perusahaan yang Listed di Bursa Efek Indonesia ( BEI ) Tahun 2008-2013, 4, 1–15.

Horne, J. C. Van, & Wachowicz, J. M. (2008). Financial Management (13th ed.). Harlow: Prentice Hall.

Jensen, M. C., & W. H. Meckling. (1976). Theory of the Firm: Managerial Behaviour Agency Cost and Ownership Structure. Journal of Financial Economic, 3(4), 305–360.

Kassem, R., & Higson, A. (2012). The New Fraud Triangle Model. Journal of Emerging Trends in Economics and Management Sciences, 3 (3), 191–195.

Kreutzfeldt, R. W., & Wallace, W. a. (1986). Error Characteristics in Audit Populations: Their Profile and Relationship to Environmental Factors. Auditing: A Journal of Practice & Theory.

Norbarani, L. “Pendeteksian Kecurangan Laporan Keuangan dengan Analisis Fraud Triangle yang Diadopsi dalam SAS No. 99â€. Skripsi pada Program Sarjana Ekonomi, Universitas Diponegoro, Semarang, 2012, hlm. 17-21.

Omoye, A. S., & Eragbhe, E. (2014). Accounting Ratios and False Financial Statements Detection : Evidence from Nigerian Quoted Companies. International Journal of Business and Social Science, 5 (7), 206–215.

Patelli, L., & Pedrini, M. (2015). Is Tone at the Top Associated with Financial Reporting Aggressiveness? Journal of Business Ethics, 126 (1), 3–19.

Persons, O. S. (1995). Using financial statement data to identify factors associated with Fraudulent Financial Reporting. Journal of Applied Business Research, 11 (3), 38.

Rezaee, Z. (2005). Causes, consequences, and deterence of financial statement fraud. Critical Perspectives on Accounting, 16 (3), 277–298.

Somayyeh, H. N. (2015). Financial ratios between fraudulent and non-fraudulent firms: Evidence from Tehran Stock Exchange. Journal of Accounting and Taxation, 7(3), 38–44.

Spathis, C. T. (2002). Detecting false financial statements using published data: some evidence from Greece. Managerial Auditing Journal, 17(4), 179–191.

Zainudin, E. F., & Hashim, H. A. (2016). Detecting fraudulent financial reporting using financial ratio. Journal of Financial Reporting and Accounting, 14(2), 266–278.

DOI: https://doi.org/10.15294/jda.v10i2.15220


  • There are currently no refbacks.

Creative Commons License
Jurnal Dinamika Akuntansi is licensed under a Creative Commons Attribution 4.0 International License