Governance structure and the tendency to do financial statements fraud

Agung Nur Probohudono; Anju Theresia Lubis; Ertambang Nahartyo; Siti Arifah

doi:10.20885/jaai.vol26.iss1.art6

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Abstract

This study aimed to examine the influence of the governance structure which consists of the age of directors, educational background of directors, directors’ gender, managerial ownership, and the existence of Independent Board of Commissioners on financial statement fraud. This research's populations are Manufacturing, Property, Real estate, and Construction Companies listed on the Indonesia Stock Exchange (IDX) period 2014-2018. The type of data used in research was secondary data and using a purposive sampling method to determine 475 companies for the samples. This research used a logistic regression analysis. The result of this research indicated that the age of directors, the gender of directors, and managerial ownership had a significant negative effect on financial statement fraud. However, the study did not find the advantage of the educational background of directors and the existence of the independent member of the Board of Commissioners on financial statement fraud.

Keywords

Financial Statement Fraud Governance Structure Directors Independent Board of Commissioners

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Author Biographies

Agung Nur Probohudono, Faculty of Economics and Business, Sebelas Maret University, Surakarta, Indonesia

Agung Nur Probohudono is a Lecturer at the Faculty of Economics and Business of Sebelas Maret University, Surakarta, Indonesia. He has taught public sector audit, public sector accounting, and public sector accounting systems. He is registered as a Certified Accountant (CA) in Indonesia. Currently, he is the Head of the Department of Accounting Sebelas Maret University. The focus of his current research is corporate governance, financial reporting, and public sector performance.

Anju Theresia Lubis, Faculty of Economics and Business, Sebelas Maret University, Surakarta, Indonesia

Anju Theresia Lubis is a graduate from the Faculty of Economics and Business of Sebelas Maret University, Surakarta, Indonesia. She was a teaching assistant for the Auditing course. Currently, she lives in Jakarta and is an entrepreneur in her current business.

Ertambang Nahartyo, Faculty of Economics and Business, Gadjah Mada University, Yogyakarta, Indonesia

Ertambang Nahartyo is a Lecturer at the Faculty of Economics and Business of Gadjah Mada University, Jogjakarta, Indonesia. The area of his expertise is about commerce, management, tourism and services, management accounting, accounting, auditing and accountability. The interested of his current research is behavioural accounting, management control system, managerial accounting

Siti Arifah, Faculty of Economics and Business, Tidar University, Magelang, Indonesia

Siti Arifah is a Lecturer at the Faculty of Economics of Tidar University, Magelang, Indonesia. She has taught public sector accounting and financial accounting. She is registered as a Certified Accountant (CA) in Indonesia. The focus of her current research is public sector performance, corporate governance, and financial reporting.

References

Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291–309. https://doi.org/10.1016/j.jfineco.2008.10.007
Adusei, M. (2019). Board gender diversity and the technical efficiency of microfinance institutions: Does size matter? International Review of Economics & Finance, 64, 393–411.
Adusei, M., & Obeng, E. Y. T. (2019). Board gender diversity and the capital structure of microfinance institutions: A global analysis. The Quarterly Review of Economics and Finance, 71, 258–269.
Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. The Accounting Review, 71(4), 443–465.
Beasley, M. S., Carcello, J. V., & Hermanson, D. R. (1999). Fraudulent Financial Reporting: 1987-1997 - An Analysis of U.S. Public Companies.
Belaounia, S., Tao, R., & Zhao, H. (2020). Gender equality’s impact on female directors’ efficacy: A multi-country study. International Business Review, 29(5), 101737.
Beneish, M. D. (1999). The detection of earnings manipulation. Financial Analysts Journal, 55(5), 24–36.
Chen, G., Firth, M., Gao, D. N., & Rui, O. M. (2006). Ownership structure, corporate governance, and fraud: Evidence from China. Journal of Corporate Finance, 12(3), 424–448.
Daboub, A. J., Rasheed, A. M. A., Priem, R. L., & Gray, D. A. (1995). Top management team characteristics and corporate illegal activity. The Academy of Management Review, 20(1), 138–170.
Dechow, P. M., Sloan, R. G., & Amy P. Sweeney. (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary Accounting Research, 13(1), 1–36.
Estes, R., & Hosseini, J. (1998). The gender gap on Wall Street: An empirical analysis of confidence in investment decision making. The Journal of Psychology, 122(6), 577–590.
Firdaus, E. F., & Suryandari, E. (2008). Pengaruh faktor kultur organisasi, manajemen, strategi, keuangan, auditor dan pemerintahan terhadap kecenderungan kecurangan akuntansi. Jurnal Akuntansi Dan Investasi, 9(2), 173–188.
Florackis, C., Alexandros KostakisKostakis, A., & Sainani, S. (2020). Idiosyncratic risk, risk-taking incentives and the relation between managerial ownership and firm value. European Journal of Operational Research, 283(2), 748–766.
Francis, B., Hasan, I., Park, J. C., & Wu, Q. (2015). Gender differences in financial reporting decision making: Evidence from accounting conservatism. Contemporary Accounting Research, 32(3), 1285–1318.
Gavious, I., Segev, E., & Yosef, R. (2012). Female directors and earnings management in high‐technology firms. Pacific Accounting Review, 24(1), 4-32.
Girau, E. A., Kee, D. K. H. A., Bujang, I., & Jidwin, A. P. (2019). The empirical analysis of corporate fraud and corporate governance in Malaysia. The Business and Management Review, 10(3), 168–175.
Goll, I., & Rasheed, A. A. (2005). The relationships between top management demographic characteristics, rational decision making, environmental munificence, and firm performance. Organization Studies, 26(7), 999–1023.
Gul, F. A., Srinidhi, B., & Ng, A. C. (2011). Does board gender diversity improve the informativeness of stock prices? Journal of Accounting and Economics, 51(3), 314–338.
Hafizah, N., Respati, N. W., & Chairina, C. (2017). Faktor-faktor yang mempengaruhi kecurangan laporan keuangan dengan analisis fraud triangle. Jurnal Reviu Akuntansi Dan Keuangan, 6(1), 811–822.
Hambrick, D. C., & Mason, P. A. (1986). Upper Echelons : The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206.
Hambrick, D. C., Misangyi, V. F., & Park, C. A. (2014). The quad model for identifying a corporate director’s potential for effective monitoring: Toward a new theory of board sufficiency. Academy of Management Review, 40(3), 323–344.
Hanani, F., & Aryani, Y. A. (2011). Pengaruh gender dewan komisaris, gender dewan direksi, dan kepemilikan manajerial terhadap kinerja perusahaan. Wahana, 14(1), 7–19.
Hitt, M. A., & Tyler, B. B. (1991). Strategic decision models: Integrating different perspectives. Strategic Management Journal, 12(5), 327–351.
Huang, H.-W., Rose-Green, E., & Lee, C.-C. (2012). CEO age and financial reporting quality. Accounting Horizons, 26(4), 725–740.
Jensen, C., & Meckling, H. (1976). Theory of the Firm : Managerial behavior, agency costs and ownership structure. 3, 305–360.
Jin, Z., Shang, Y., & Xu, J. (2018). The impact of government subsidies on private R&D and firm performance: does ownership matter in china’s manufacturing industry? Sustainability, 10(7), 1–20.
Kaplan, S., Pany, K., Samuels, J., & Zhang, J. (2009). An examination of the association between gender and reporting intentions for fraudulent financial reporting. Journal of Business Ethics Volume, 87, 15–30.
Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics, 114, 207–223.
King, T., Srivastav, A., & Williams, J. (2016). What’s in an education? Implications of CEO education for bank performance. Journal of Corporate Finance, 37, 87–308.
Komite Nasional Kebijakan Governace. (2006). Pedoman Umum Good Corporate Governance. KNKG.
Kong, V. X., & Zhang, J. (2010). The effect of managerial education and firm-ownership structure. The Chinese Economy Volume 43, 43(6), 34–53.
Kuo, H.-C., Wang, L.-H., & Yeh, L.-J. (2018). The role of education of directors in influencing firm R&D investment. Asia Pacific Management Review, 23(2), 108–120.
Kusumastuti, S., Supatmi, S., & Sastra, P. (2007). Pengaruh board diversity terhadap nilai perusahaan dalam perspektif corporate governance. Jurnal Akuntansi Dan Keuangan, 9(2), 88–98.
Lestari, E. B., Tarjo, & Prasteyono. (2017). The factors affecting tendency of fraud in government sector. Journal of Auditing, Finance, and Forensic Accounting, 5(2), 67–76.
Liao, J., Smith, D., & Liu, X. (2019). Female CFOs and accounting fraud: Evidence from China. Pacific-Basin Finance Journal, 53, 449–463.
Lukviarman, N. (2004). Ownership structure and firm performance: the case of Indonesia. Curtin Theses.
Luo, J., Peng, C., & Zhang, X. (2019). The impact of CFO gender on corporate fraud: Evidence from China. Pacific-Basin Finance Journal, 53, 449–463.
Marpaung, A. P., Koto, M., Shareza Hafiz, M., & Hamdani, R. (2022). Female directors and firm performance: evidence of family firm in Indonesia. Asian Journal of Economics, Business and Accounting, 22(1), 19–30. https://doi.org/10.9734/ajeba/2022/v22i130538
Maula, K. A., & Rakhman, A. (2018). Pengaruh board diversity (CEO wanita, CFO wanita, proporsi dewan komisaris wanita, proporsi komite audit wanita) terhadap pelanggaran aturan laporan keuangan. Accounthink: Journal of Accounting and Finance, 3(1), 431–445.
Maulia, S. T., & Januarti, I. (2014). Pengaruh usia, pengalaman, dan pendidikan dewan komisaris terhadap kualitas laporan keuangan. Diponegoro Journal of Accounting, 3(3), 1–8.
Merawati, L. K., & Mahaputra, I. N. K. A. (2017). Moralitas, pengendalian internal dan gender dalam kecenderungan terjadinya fraud. Jurnal Akuntansi, 21(1), 35–46.
Murtanto, M., & Sandra, D. (2019). Pengaruh fraud diamond dalam mendeteksi financial statement fraud. Jurnal Media Riset Akuntansi, Auditing & Informasi, 19(2), 209–226.
Nor, N. H. M., Nawawi, A., Nawawi, A., & Salin, A. S. A. P. (2017). The influence of board independence, board size and managerial ownership on firm investment efficiency. Pertanika Journal of Social Science and Humanities, 25(3), 1039–1058.
Nugraheni, N. K., & Triatmoko, H. (2017). Analisis faktor-faktor yang mempengaruhi terjadinya financial statement fraud: Perspektif diamond fraud theory (studi pada perusahaan perbankan yang terdaftar di Bursa Efek Indonesia periode 2014-2016). Jurnal Akuntansi Dan Auditing, 14(2), 118–143.
Nurbaiti, Z., & Hanafi, R. (2017). Analisis pengaruh fraud diamond dalam mendeteksi tingkat accounting irregularities. Jurnal Akuntansi Indonesia, 6(2), 167–184.
Papadimitri, P., Pasiouras, F., Tasiou, M., & Ventouri, A. (2020). The effects of board of directors’ education on firms’ credit ratings. Journal of Business Research, 116, 294–313.
Peltier‐Rivest, D., & Lanoue, N. (2012). Thieves from within: occupational fraud in Canada. Journal of Financial Crime, 19(1), 54–64.
Peterson, D., Rhoads, A., & Vaught, B. C. (2001). Ethical beliefs of business professionals: A study of gender, age and external factors. Journal of Business Ethics, 31, 225–232.
Powell, M., & Ansic, D. (1997). Gender differences in risk behaviour in financial decision-making: An experimental analysis. Journal of Economic Psychology, 18(19), 605–628.
Probohudono, A. N. (2012). A Comparative Analysis of Voluntary Risk Disclosures. Curtin University.
Probohudono, A. N., Tower, G., & Rusmin, R. (2013). Diversity in risk communication. Australasian Accounting, Business and Finance Journal, 7(1), 43–58.
Roden, D. M., Cox, S. R., & Kim, J. Y. (2016). The fraud triangle as a predictor of corporate fraud. Academy of Accounting and Financial Studies Journal, 20(1), 80–92.
Schrand, C. M., & Zechman, S. L. C. (2012). Executive overconfidence and the slippery slope to financial misreporting. Journal of Accounting and Economics, 53(2), 311–329.
Sihombing, K. S., & Rahardjo, S. N. (2014). Analisis fraud diamond dalam mendeteksi financial statement fraud : Studi empiris pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) tahun 2010-2012. Diponegoro Journal of Accounting, 3(2), 657–668.
Skousen, C. J., Smith, K. R., & Wright, C. J. (2009). Detecting and predicting financial statement fraud: The effectiveness of the fraud triangle and SAS No. 99. Corporate Governance and Firm Performance, 13, 53–81.
Sumilat, H., & Destriana, N. (2017). Faktor-faktor yang mempengaruhi pengungkapan corporate social responsibility. Jurnal Bisnis Dan Akuntansi, 19(1a), 129–140.
Talavera, O., Yin, S., & Zhang, M. (2018). Age diversity, directors’ personal values, and bank performance. International Review of Financial Analysis, 55, 60–79.
Tarjo, & Herawati, N. (2015). Application of Beneish M-Score Models and Data Mining to Detect Financial Fraud. 2nd Global Conference on Business and Social Sciences (GCBSS-2015) on “Multidisciplinary Perspectives on Management and Society, 924–930.
Troy, C., Smith, K. G., & Domino, M. A. (2011). CEO demographics and accounting fraud: Who is more likely to rationalize illegal acts? Strategic Organization, 9(4), 259–282.
Xu, Y., Zhang, L., & Chen, H. (2015). Board age and corporate financial fraud: An interactionist view. Long Range Planning, 51(6), 815–830.
Zahra, S. A. (2007). Understanding the causes and effects of top management fraud. Human Resource Management International Digest, 15(7). https://doi.org/10.1108/hrmid.2007.04415gad.001
Zhang, X., Bartol, K. M., Smith, K. G., Pfarrer, M. D., & Khanin, D. M. (2008). CEOs on the edge: Earnings manipulation and stock-based incentive misalignment. The Academy of Management Journal, 51(2), 241–258.

References

Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291–309. https://doi.org/10.1016/j.jfineco.2008.10.007

Adusei, M. (2019). Board gender diversity and the technical efficiency of microfinance institutions: Does size matter? International Review of Economics & Finance, 64, 393–411.

Adusei, M., & Obeng, E. Y. T. (2019). Board gender diversity and the capital structure of microfinance institutions: A global analysis. The Quarterly Review of Economics and Finance, 71, 258–269.

Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. The Accounting Review, 71(4), 443–465.

Beasley, M. S., Carcello, J. V., & Hermanson, D. R. (1999). Fraudulent Financial Reporting: 1987-1997 - An Analysis of U.S. Public Companies.

Belaounia, S., Tao, R., & Zhao, H. (2020). Gender equality’s impact on female directors’ efficacy: A multi-country study. International Business Review, 29(5), 101737.

Beneish, M. D. (1999). The detection of earnings manipulation. Financial Analysts Journal, 55(5), 24–36.

Chen, G., Firth, M., Gao, D. N., & Rui, O. M. (2006). Ownership structure, corporate governance, and fraud: Evidence from China. Journal of Corporate Finance, 12(3), 424–448.

Daboub, A. J., Rasheed, A. M. A., Priem, R. L., & Gray, D. A. (1995). Top management team characteristics and corporate illegal activity. The Academy of Management Review, 20(1), 138–170.

Dechow, P. M., Sloan, R. G., & Amy P. Sweeney. (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary Accounting Research, 13(1), 1–36.

Estes, R., & Hosseini, J. (1998). The gender gap on Wall Street: An empirical analysis of confidence in investment decision making. The Journal of Psychology, 122(6), 577–590.

Firdaus, E. F., & Suryandari, E. (2008). Pengaruh faktor kultur organisasi, manajemen, strategi, keuangan, auditor dan pemerintahan terhadap kecenderungan kecurangan akuntansi. Jurnal Akuntansi Dan Investasi, 9(2), 173–188.

Florackis, C., Alexandros KostakisKostakis, A., & Sainani, S. (2020). Idiosyncratic risk, risk-taking incentives and the relation between managerial ownership and firm value. European Journal of Operational Research, 283(2), 748–766.

Francis, B., Hasan, I., Park, J. C., & Wu, Q. (2015). Gender differences in financial reporting decision making: Evidence from accounting conservatism. Contemporary Accounting Research, 32(3), 1285–1318.

Gavious, I., Segev, E., & Yosef, R. (2012). Female directors and earnings management in high‐technology firms. Pacific Accounting Review, 24(1), 4-32.

Girau, E. A., Kee, D. K. H. A., Bujang, I., & Jidwin, A. P. (2019). The empirical analysis of corporate fraud and corporate governance in Malaysia. The Business and Management Review, 10(3), 168–175.

Goll, I., & Rasheed, A. A. (2005). The relationships between top management demographic characteristics, rational decision making, environmental munificence, and firm performance. Organization Studies, 26(7), 999–1023.

Gul, F. A., Srinidhi, B., & Ng, A. C. (2011). Does board gender diversity improve the informativeness of stock prices? Journal of Accounting and Economics, 51(3), 314–338.

Hafizah, N., Respati, N. W., & Chairina, C. (2017). Faktor-faktor yang mempengaruhi kecurangan laporan keuangan dengan analisis fraud triangle. Jurnal Reviu Akuntansi Dan Keuangan, 6(1), 811–822.

Hambrick, D. C., & Mason, P. A. (1986). Upper Echelons : The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206.

Hambrick, D. C., Misangyi, V. F., & Park, C. A. (2014). The quad model for identifying a corporate director’s potential for effective monitoring: Toward a new theory of board sufficiency. Academy of Management Review, 40(3), 323–344.

Hanani, F., & Aryani, Y. A. (2011). Pengaruh gender dewan komisaris, gender dewan direksi, dan kepemilikan manajerial terhadap kinerja perusahaan. Wahana, 14(1), 7–19.

Hitt, M. A., & Tyler, B. B. (1991). Strategic decision models: Integrating different perspectives. Strategic Management Journal, 12(5), 327–351.

Huang, H.-W., Rose-Green, E., & Lee, C.-C. (2012). CEO age and financial reporting quality. Accounting Horizons, 26(4), 725–740.

Jensen, C., & Meckling, H. (1976). Theory of the Firm : Managerial behavior, agency costs and ownership structure. 3, 305–360.

Jin, Z., Shang, Y., & Xu, J. (2018). The impact of government subsidies on private R&D and firm performance: does ownership matter in china’s manufacturing industry? Sustainability, 10(7), 1–20.

Kaplan, S., Pany, K., Samuels, J., & Zhang, J. (2009). An examination of the association between gender and reporting intentions for fraudulent financial reporting. Journal of Business Ethics Volume, 87, 15–30.

Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics, 114, 207–223.

King, T., Srivastav, A., & Williams, J. (2016). What’s in an education? Implications of CEO education for bank performance. Journal of Corporate Finance, 37, 87–308.

Komite Nasional Kebijakan Governace. (2006). Pedoman Umum Good Corporate Governance. KNKG.

Kong, V. X., & Zhang, J. (2010). The effect of managerial education and firm-ownership structure. The Chinese Economy Volume 43, 43(6), 34–53.

Kuo, H.-C., Wang, L.-H., & Yeh, L.-J. (2018). The role of education of directors in influencing firm R&D investment. Asia Pacific Management Review, 23(2), 108–120.

Kusumastuti, S., Supatmi, S., & Sastra, P. (2007). Pengaruh board diversity terhadap nilai perusahaan dalam perspektif corporate governance. Jurnal Akuntansi Dan Keuangan, 9(2), 88–98.

Lestari, E. B., Tarjo, & Prasteyono. (2017). The factors affecting tendency of fraud in government sector. Journal of Auditing, Finance, and Forensic Accounting, 5(2), 67–76.

Liao, J., Smith, D., & Liu, X. (2019). Female CFOs and accounting fraud: Evidence from China. Pacific-Basin Finance Journal, 53, 449–463.

Lukviarman, N. (2004). Ownership structure and firm performance: the case of Indonesia. Curtin Theses.

Luo, J., Peng, C., & Zhang, X. (2019). The impact of CFO gender on corporate fraud: Evidence from China. Pacific-Basin Finance Journal, 53, 449–463.

Marpaung, A. P., Koto, M., Shareza Hafiz, M., & Hamdani, R. (2022). Female directors and firm performance: evidence of family firm in Indonesia. Asian Journal of Economics, Business and Accounting, 22(1), 19–30. https://doi.org/10.9734/ajeba/2022/v22i130538

Maula, K. A., & Rakhman, A. (2018). Pengaruh board diversity (CEO wanita, CFO wanita, proporsi dewan komisaris wanita, proporsi komite audit wanita) terhadap pelanggaran aturan laporan keuangan. Accounthink: Journal of Accounting and Finance, 3(1), 431–445.

Maulia, S. T., & Januarti, I. (2014). Pengaruh usia, pengalaman, dan pendidikan dewan komisaris terhadap kualitas laporan keuangan. Diponegoro Journal of Accounting, 3(3), 1–8.

Merawati, L. K., & Mahaputra, I. N. K. A. (2017). Moralitas, pengendalian internal dan gender dalam kecenderungan terjadinya fraud. Jurnal Akuntansi, 21(1), 35–46.

Murtanto, M., & Sandra, D. (2019). Pengaruh fraud diamond dalam mendeteksi financial statement fraud. Jurnal Media Riset Akuntansi, Auditing & Informasi, 19(2), 209–226.

Nor, N. H. M., Nawawi, A., Nawawi, A., & Salin, A. S. A. P. (2017). The influence of board independence, board size and managerial ownership on firm investment efficiency. Pertanika Journal of Social Science and Humanities, 25(3), 1039–1058.

Nugraheni, N. K., & Triatmoko, H. (2017). Analisis faktor-faktor yang mempengaruhi terjadinya financial statement fraud: Perspektif diamond fraud theory (studi pada perusahaan perbankan yang terdaftar di Bursa Efek Indonesia periode 2014-2016). Jurnal Akuntansi Dan Auditing, 14(2), 118–143.

Nurbaiti, Z., & Hanafi, R. (2017). Analisis pengaruh fraud diamond dalam mendeteksi tingkat accounting irregularities. Jurnal Akuntansi Indonesia, 6(2), 167–184.

Papadimitri, P., Pasiouras, F., Tasiou, M., & Ventouri, A. (2020). The effects of board of directors’ education on firms’ credit ratings. Journal of Business Research, 116, 294–313.

Peltier‐Rivest, D., & Lanoue, N. (2012). Thieves from within: occupational fraud in Canada. Journal of Financial Crime, 19(1), 54–64.

Peterson, D., Rhoads, A., & Vaught, B. C. (2001). Ethical beliefs of business professionals: A study of gender, age and external factors. Journal of Business Ethics, 31, 225–232.

Powell, M., & Ansic, D. (1997). Gender differences in risk behaviour in financial decision-making: An experimental analysis. Journal of Economic Psychology, 18(19), 605–628.

Probohudono, A. N. (2012). A Comparative Analysis of Voluntary Risk Disclosures. Curtin University.

Probohudono, A. N., Tower, G., & Rusmin, R. (2013). Diversity in risk communication. Australasian Accounting, Business and Finance Journal, 7(1), 43–58.

Roden, D. M., Cox, S. R., & Kim, J. Y. (2016). The fraud triangle as a predictor of corporate fraud. Academy of Accounting and Financial Studies Journal, 20(1), 80–92.

Schrand, C. M., & Zechman, S. L. C. (2012). Executive overconfidence and the slippery slope to financial misreporting. Journal of Accounting and Economics, 53(2), 311–329.

Sihombing, K. S., & Rahardjo, S. N. (2014). Analisis fraud diamond dalam mendeteksi financial statement fraud : Studi empiris pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) tahun 2010-2012. Diponegoro Journal of Accounting, 3(2), 657–668.

Skousen, C. J., Smith, K. R., & Wright, C. J. (2009). Detecting and predicting financial statement fraud: The effectiveness of the fraud triangle and SAS No. 99. Corporate Governance and Firm Performance, 13, 53–81.

Sumilat, H., & Destriana, N. (2017). Faktor-faktor yang mempengaruhi pengungkapan corporate social responsibility. Jurnal Bisnis Dan Akuntansi, 19(1a), 129–140.

Talavera, O., Yin, S., & Zhang, M. (2018). Age diversity, directors’ personal values, and bank performance. International Review of Financial Analysis, 55, 60–79.

Tarjo, & Herawati, N. (2015). Application of Beneish M-Score Models and Data Mining to Detect Financial Fraud. 2nd Global Conference on Business and Social Sciences (GCBSS-2015) on “Multidisciplinary Perspectives on Management and Society, 924–930.

Troy, C., Smith, K. G., & Domino, M. A. (2011). CEO demographics and accounting fraud: Who is more likely to rationalize illegal acts? Strategic Organization, 9(4), 259–282.

Xu, Y., Zhang, L., & Chen, H. (2015). Board age and corporate financial fraud: An interactionist view. Long Range Planning, 51(6), 815–830.

Zahra, S. A. (2007). Understanding the causes and effects of top management fraud. Human Resource Management International Digest, 15(7). https://doi.org/10.1108/hrmid.2007.04415gad.001

Zhang, X., Bartol, K. M., Smith, K. G., Pfarrer, M. D., & Khanin, D. M. (2008). CEOs on the edge: Earnings manipulation and stock-based incentive misalignment. The Academy of Management Journal, 51(2), 241–258.

Governance structure and the tendency to do financial statements fraud

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Agung Nur Probohudono, Faculty of Economics and Business, Sebelas Maret University, Surakarta, Indonesia

Anju Theresia Lubis, Faculty of Economics and Business, Sebelas Maret University, Surakarta, Indonesia

Ertambang Nahartyo, Faculty of Economics and Business, Gadjah Mada University, Yogyakarta, Indonesia

Siti Arifah, Faculty of Economics and Business, Tidar University, Magelang, Indonesia

References

References