Track: Business Management

Abstract

This study aims to determine the influence of dependent and independent variables simultaneously and partially. The variables in the study consisted of pressure (financial stability), opportunity (nature of industry), rationalization (accrual accounting), capability (change of directors), arrogance (frequency of appearance of CEO photos), and collusion (market performance) on financial statement fraud. The population used is manufacturing companies in the basic and chemical industry sub-sectors that are consistently listed on the Indonesia Stock Exchange (IDX) in 2019-2021. The sample selection technique uses purposive sampling technique which uses 147 sample data and is processed using SPSS 25 software and the analysis tool used in this study is logistic regression analysis. The test results show that the variables of independent pressure, opportunity, rationalization, capability, arrogance, and collusion simultaneously affect financial statement fraud. Meanwhile, for partial testing, it shows that financial stability has a positive effect and changes in directors have a negative effect. Meanwhile, the nature of industry, accrual accounting, the frequency of the appearance of CEO photos, and market performance have no effect on financial statement fraud.