Abstract
Fraud in corporations is a topic that has received significant and growing attention, not to mention that it is considered as a loophole in the financial statement fraud. This study aims to obtain empirical evidence about the detection of the financial statement fraud proxied with earnings management through revenue discretionary model (Stubben in Acc Rev 85(2): 695–717, 2010) accordance with fraud diamond by Wolfe and Hermanson ( CPA J, 1–5, 2004). The variables used were the factor of pressure proxied by financial stability, external pressure, personal financial need and financial targets, while the factor of opportunity was proxied by nature of the industry and ineffective monitoring, the factor of rationalization and the factor of capability. The samples used in this study were 86 manufacturing companies that were listed in Indonesia Stock Exchange in the period 2012–2014. Secondary data were used in the form of financial reports of companies. Hypothesis testing was conducted using logistic linear regression with EViews software. The results showed that the variables such as pressure, opportunity, rationalization and capability simultaneously determine the financial statement fraud. Based on the partial test (Wald test), variable external pressure, financial target and capability partially could be used to predict the financial statement fraud, while other variables could not.
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Santoso, N.T., Surenggono (2018). Predicting Financial Statement Fraud with Fraud Diamond Model of Manufacturing Companies Listed in Indonesia. In: Said, R., Mohd Sidek, N., Azhar, Z., Anuar Kamarudin, K. (eds) State-of-the-Art Theories and Empirical Evidence. Springer, Singapore. https://doi.org/10.1007/978-981-10-6926-0_9
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DOI: https://doi.org/10.1007/978-981-10-6926-0_9
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