This study aims to analyze the effect of pressure, opportunity, rationalization, capability, arrogance on fraudulent financial reporting. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange. The results showed that financial stability pressures, industrial conditions had a positive and significant effect on fraudulent financial reporting, while the change of directors had a significant negative effect on fraudulent financial reporting. Financial stability pressures will tend to create fraudulent financial reporting and the capability to change directors can prevent fraudulent financial reporting. Financial target pressures, external pressures, institutional ownership, effectiveness of supervision, industrial conditions, changes in auditors, total accruals and arrogance do not have a significant effect on fraudulent financial reporting.