The Beneish M-Score Model in Detecting Fraudulent Financial Reporting: The Hexagon Perspective Theory

Authors

  • Sherawanti Permata Kusuma Department of Accounting, Faculty of Economics and Business, Universitas Dian Nuswantoro
  • Melati Oktafiyani Department of Accounting, Faculty of Economics and Business, Universitas Dian Nuswantoro https://orcid.org/0000-0002-6645-0448
  • Imang Dapit Pamungkas Department of Accounting, Faculty of Economics and Business, Universitas Dian Nuswantoro
  • Juli Ratnawati Department of Accounting, Faculty of Economics and Business, Universitas Dian Nuswantoro

DOI:

https://doi.org/10.33633/jpeb.v9i1.8369

Abstract

This research aims to investigate the effect of fraud on fraudulent financial reports (FFR) using the hexagon theory. The seven factors were financial stability, external pressure, ineffective monitoring, auditor changes, director changes, arrogance, and collusion. This study has a population of health companies listed on the IDX in 2018-2021. This study uses a quantitative approach. Based on the logistic regression analysis, the study finds that financial stability, change director, and arrogance affect FFR. On the other hand, external pressure, ineffective monitoring, auditor change, and collusion do not affect FFR. Keywords:Fraudulent financial reporting, Hexagon theory, Beneish M-Score

Author Biography

Melati Oktafiyani, Department of Accounting, Faculty of Economics and Business, Universitas Dian Nuswantoro

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Published

2024-04-05

How to Cite

Kusuma, S. P., Oktafiyani, M., Pamungkas, I. D., & Ratnawati, J. (2024). The Beneish M-Score Model in Detecting Fraudulent Financial Reporting: The Hexagon Perspective Theory. Jurnal Penelitian Ekonomi Dan Bisnis, 9(1), 15–28. https://doi.org/10.33633/jpeb.v9i1.8369

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Vol. 9 No. 1 (2024): Jurnal Penelitian Ekonomi dan Bisnis

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