FACTORS OF FINANCIAL STATEMENT FRAUD IN NON-FINANCIAL COMPANIES (EMPIRICAL STUDY ON NON-FINANCIAL COMPANIES LISTED IN INDONESIA STOCK EXCHANGE 2016-2019)

Abstract

This study aims to examine the effect of earnings management and risk management on financial statement fraud. The independent variables tested in this study consisted of earnings management, liquidity, profitability, and solvency. Furthermore, there are exchange rates and economic growth as control variables. The population of this study is the non-financial companies listed on the Indonesia Stock Exchange from 2016 to 2019. The total samples used are 331 companies by using the purposive sampling technique. The analytical methods used are panel data analysis, descriptive statistics, classical assumption test, model fit-test, and regression test using STATA 14. The results indicate that variables in this study simultaneously affect financial statement fraud. Partially, earnings management, profitability, and exchange rates have a positive and significant effect on financial statement fraud. Meanwhile, solvency has a positive effect on financial statement fraud but it is not significant.