Accounting
Jasella Sakwi Yanti; Yossi Diantimala; Nuraini A
Abstract
This paper aims to test the Crowes Pentagon Theory of Fraud in detecting financial statement fraud and provide further explanation of the fraud indicators in the Pentagon Fraud Theory consisting of pressure, opportunity, competence, rationalization, and arrogance. (arrogance) can detect fraud in financial ...
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This paper aims to test the Crowes Pentagon Theory of Fraud in detecting financial statement fraud and provide further explanation of the fraud indicators in the Pentagon Fraud Theory consisting of pressure, opportunity, competence, rationalization, and arrogance. (arrogance) can detect fraud in financial reporting in manufacturing companies listed on the Indonesia Stock Exchange in 2017-2021. The data used in this research was obtained from annual reports and websites of manufacturing companie. The sample selection technique in this study used simple random sampling to obtain 655 company-years. The data analysis techniques used are descriptive statistical and multiple linear regression analyses. The results show that the fraud indicators in the fraud pentagon theory represented by financial stability, leverage, ineffective monitoring, and director turnover, can detect financial statement fraud, while other indicators - auditor changes and a large number of CEO photos - cannot detect financial statement fraud.
Rezvan Torabi; Mahmoud Eshraghi; Elham Nagheli
Volume 4, Issue 1 , January 2017, , Pages 56-65
Abstract
Providing stable conditions in various sectors of economy is one of the most important factors that is required for moving toward sustainable growth and holistic development in a country. One of the major prerequisites of economic stability and exiting the economic crises is financial stability. In economic ...
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Providing stable conditions in various sectors of economy is one of the most important factors that is required for moving toward sustainable growth and holistic development in a country. One of the major prerequisites of economic stability and exiting the economic crises is financial stability. In economic literature, it is always emphasized on establishment of stability and sustainable growth via financial development. However, financial development requires financial tools such as an efficient banking system whose efficiency is possible through competitiveness and financial liberalization. The present study explores financial stability and economic performance in OPEC countries during the time period 2000-2013. It is applicable from objective aspect and descriptive-analytical from methodological aspect. It explores the relationship between financial sector and economic performance using the generalized method of moments (GMM) following Creel et al. (2014). The results disclosed that the effect of independent variable of financial stability on the dependent variable of economic performance (economic growth) in OPEC countries is positive and significant. This showed that increasing of financial stability and departing from financial crises decreases the investment risk and it is increased when transaction costs, production, and economic growth are increased in these countries. Likewise, the results demonstrated that the effect of the independent variable of financial liberalization on the dependent variable of economic performance (economic growth) in OPEC countries is positive and significant. This indicated that increasing of financial liberalization and improvement of financial transactions among countries will decrease the investment risk and it is increased when transaction costs, production, and economic growth are increased.
