THE EFFECT OF FRAUD HEXAGON ON FINANCIAL STATEMENTFRAUD USING THE BENEISH M-SCORE MODELin the Energy Sector Listed on the IDX 2017-2021

Abstract

This study aims to examine the effect of financial targets, financial stability, external pressure, change of directors, ineffective monitoring, change in auditor, ratio of total accruals to total assets, frequent number of CEO's picture, and state-owned enterprise on financial statement fraud in energy sector companies listed on the IDX in 2017-2021. This study used logistic regression analysis with a total sample of 35 companies. The research method used is a quantitative method using secondary data. Data was selected using purposive sampling and processed using IBM SPSS software version 26. The results of this study show that financial stability and the ratio of total accrual to total assets have a positive and significant effect on financial statement fraud. Financial target, external pressure, change of directors, ineffective monitoring, change in auditor, frequent number of CEO's picture, and state-owned enterprise doesn’t have a significant effect on financial statement fraud.