Effect Ownership, Accountant Public Office, and Financial Distress to the Public Company Financial Fraudulent Reporting in Indonesia

Abstract

This study empirically examine the influence of ownership, accountant public office and the financial distress on fraudulent financial reporting. The variables studied were foreign ownership, family ownership, accountant public office and the financial distress of public companies in Indonesia in 2009 to 2012. The research was conducted by quantitative methods using secondary data. Secondary data comes from a list of cases Bapepam-LK and the annual reports listed companies on the Stock Exchange. This population of study was company listed on the Stock Exchange, and then the samples were taken by purposive sampling criteria the company's corporate criteria sanctioned Bapepam-LK and the sanctions contained elements of fraud, including the non-financial corporate sector and have the data required in this study. At the end, the total sample of 64 companies that the company. This study uses logistic regression statistical tools as the dependent variable is a dummy variable (non-metric), while the independent variable is a variable mixture of metric and non-metric. The results show that the family ownership significantly affect financial reporting fraud but in the opposite direction because of the negative impact. Foreign ownership of a significant negative effect on fraudulent financial reporting. This indicates the greater ownership by the family, the lower the level of financial of fraudulent reporting accountant public office has no effect on fraudulent financial reporting. This occurs because both KAP Big Four and Small Firm have the same standards in Generally Accepted Accounting Principles (GAAP) in carrying out their duties as auditor. Financial distress negatively affects fraudulent financial reporting.

Pengaruh Profitabilitas, Likuiditas, Leverage, dan Corpo-Rate Governance Terhadap Kecurangan Laporan Keuangan, Serta Financial Distress Sebagai Variabel Intervening

“…Financial distress merupakan salah satu faktor berpengaruh terhadap terjadinya kecurangan laporan keuangan (Mardiana, 2015;Ngan, 2013). Financial distress merupakan suatu keadaan financial perusahaan mengalami kesulitan dalam memenuhi kewajibannya yang pada akhirnya dapat mengakibatkan kebangkrutan bagi perusahaan (Ilman, Zakaria, dan Nindito, 2011).…”

The Effect of CFO Demographics on Fraudulent Financial Reporting

“…(Rusmin and Evans, 2017) stated that 67% of companies listed in Indonesia are family-controlled companies. Referring to the result of research conducted by (Mardiana, 2015), companies that are controlled by the family will carry out active supervision for managers and other company officials so that the CFO will not commit fraud. The level of education has no predictable influence because the average degree of knowledge of the CFO is undergraduate and a graduate-level learning more about theory.…”

Analisa Pengaruh Kinerja Keuangan Dan Corporate Governance Terhadap Kemungkinan Terjadinya Financial Statement Fraud

“…Sesuai dengan Pernyataan Standar Akuntansi Keuangan No 1 yang menyatakan bahwa tujuan pelaporan keuangan bermanfaat bagi sebagian besar kalangan pengguna laporan keuangan dalam rangka membuat keputusan-keputusan ekonomi serta menunjukkan pertanggungjawaban manajemen atas penggunaan sumber-sumber daya yang dipercayakan kepada mereka (PSAK, 2009). Sebagai sebuah acuan dalam proses pengambilan keputusan pihak berkepentingan, informasi yang disajikan dalam laporan keuangan harus relevan dan memiliki kehandalan bahwa informasi harus bebas dari pengertian yang menyesatkan, kesalahan material, dan dapat diandalkan para pemakainya sebagai presentasi yang tulus dan jujur dari yang seharusnya disajikan atau yang secara wajar dapat disajikan (Mardiana, 2015).…”

“…Kasus penipuan ini telah mengikis kepercayaan terhadap pasar keuangan, informasi keuangan dan juga profesi akuntan di seluruh dunia (Law, 2011). Kecurangan ini merupakan kecurangan yang dilakukan oleh pihak manajemen yang dengan sengaja melaporkan salah saji material dalam laporan keuangan (Mardiana, 2015).…”

“…Dengan begitu keuangan perusahaan akan terlihat sehat dan memiliki prospek yang baik sehingga perusahaan akan dengan mudah mendapatkan dana tambahan. Pada penelitianMardiana (2015) financial distress berpengaruh negatif signifikan terhadap financial statement fraud. Sedangkan pada penelitianNgan (2013) financial distress berpengaruh positif terhadap financial statement fraud.H5 : Financial distress berpengaruh positif terhadap financial statement fraud Pengaruh likuiditas terhadap financial statement fraud Likuiditas merupakan kemampuan perusahaan dalam mendanai operasional perusahaan dan melunasi kewajiban jangka pendek perusahaan (Wild et al 2005 dalam Widarjo & Setiawan, 2009).…”