The increasing number of cases related to accounting scandals in the world has caused various parties to assume that management has commited fraudulent financial statement. Detection of fraudulent financial statements must be carried out so it can be prevented fraud and the possibility of a scandal is prolonged. This research examines the effects of pentagon fraud theory (pressure, opportunity, rationalization, competence and arrogance toward fraudulent financial statement: The property, real estate and building construction companies listed on Indonesia Stock Exchange (IDX) in 2014-2018 periods The data used were the secondary data based on the purposive sampling method, the number of companies were 29 companies with 5 years observation. Based on logistic regression analysis, pressure has an impact on fraudulent financial statements on the significant value of 0.045. Opportunity has no impact on fraudulent financial statements on the significant value of 0.077. Rationalization has no impact on fraudulent financial statements on the significant value of 0.291. Competence has no impact on fraudulent financial statements on the significant value of 0.107. Arrogance has an impact on fraudulent financial statements on the significant value of 0.001.
CITATION STYLE
Rahmatika, D. N., Kartikasari, M. D., Indriasih, D., Sari, I. A., & Mulia, A. (2019). Detection of Fraudulent Financial Statement; Can Perspective of Fraud Diamond Theory be applied to Property, Real Estate, and Building Construction Companies in Indonesia? European Journal of Business and Management Research, 4(6). https://doi.org/10.24018/ejbmr.2019.4.6.139
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