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Research Article Open access CC BY 4.0

Detection of Potential Financial Statement Fraud Using the Fraud Hexagon Model Approach (Empirical Study of LQ 45 Companies Listed on the IDX in 2018–2022)

Ahmad Nurkholik, Yenny Ernitawati, Roni

Asian Journal of Economics, Business and Accounting · pp. 210–220 · Published 15 Feb 2024

10.9734/ajeba/2024/v24i31254

Abstract

The researcher intends to assess and identify fraudulent financial reporting by examining LQ 45 index companies listed on the Indonesia Stock Exchange for the period 2018–2022. The fraud hexagon, which consists of pressure, opportunity, capability, rationalization, arrogance, and collusion, is used to measure fraudulent financial reporting. Purposive sampling technique was used to obtain a sample of 125 data. Using the Eviews 12 program, researchers conducted a quantitative descriptive study using a panel data regression analysis approach using the Common Effect Model (CEM). The findings of this study indicate that pressure on financial stability significantly influences the potential for fraudulent financial reporting. Meanwhile, opportunities through ineffective monitoring, capability seen from changes in directors, rationalization seen from changes in auditors, arrogance seen from the number of CEO photos, and collusion seen from cooperation with government projects have no significant effect on the potential for financial fraud. reporting.

Fraudulent financial reporting pressure opportunity capability rationalization arrogance and collusion

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Cited by 1

Hexagon Theory dalam mendeteksi Fraudulent Financial Reporting Perusahaan BEI

Anna Falasifah, Kartika Hendra Titisari, Istiatin Istiatin · Studi Akuntansi, Keuangan, dan Manajemen · 2025

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