Perspektif fraud diamond theory dalam menjelaskan earnings management non-gaap pada perusahaan terpublikasi di Indonesia

Abstract

The purpose of this study is to investigate the cause factors of non-GAAP earnings management from Fraud Diamond Theory (FDT) perspective. FDT is a theory, which widely used in auditing area to explain the cause factors of fraud in companies. Using four FDT indicators, which are stress, opportunity, rationalization, and capabilities, this research investigates 42 companies from non-banking and non-financing industries during 2010 and 2013. As the results of logistic regression analyses, we find that opportunity and capabilities influence managers to conduct non-GAAP earnings management. On the other hand, stress and rationalization have the different results. The findings show that in Indonesia, opportunity and capabilities are two aspects that should be given a strong attention from Indonesian regulator in order to reduce non-GAAP earnings management