Main Article Content


This study aims to empirically investigate the impact of financial stability, financial targets, and rationalization on instances of financial statement fraud in State-Owned Enterprises operating in the financial services and insurance sector listed on the Indonesia Stock Exchange from 2016 to 2021. The research is motivated by alleged incidents of financial statement manipulation, particularly the practice of window dressing, observed in various financial corporations during 2015 and 2016. The study utilizes secondary data collected from a sample of 14 companies observed over a six-year timeframe. The sample selection employed a purposive sampling technique, and data analysis involved conducting multiple linear regression analysis using the SPSS version 25 software. The findings indicate that financial targets and rationalization have a significant impact on instances of financial statement fraud, while financial stability does not demonstrate a comparable influence.


Financial stability financial targets rationalization and fraud of financial statements

Article Details

How to Cite
Meihendri, Yunilma, Dandes Rifa, Nurhuda, Irda, & Siti Maharani Tasrif. (2023). The effect of financial stability, financial targets and rationalization on financial statements fraud. Journal of Contemporary Accounting, 4(3), 169–178.


  1. Afiah, E. T., & Aulia, V. (2020). Financial stability, financial targets, effective monitoring dan rationalization dan kecurangan laporan keuangan. Jurnal Revenue: Jurnal Ilmiah Akuntansi, 1(1), 90-100.
  2. AICPA. (2017). Consideration of fraud in a financial statement. construction contractors: 175–88.
  3. Andriani, R. (2019). Pengaruh fraud triangle terhadap kecurangan laporan keuangan (studi empiris pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia. Jurnal Riset Akuntansi Tirtayasa, 4(1), 64-74.
  4. Bell, T., Szykowny, S., & Willingham, J. (1993). Assessing the likelihood of fraudulent financial reporting: a cascaded logit approach. Working Paper, KPMG Peat Marwick, Montvale, NJ.
  5. Cressey, D. (1953). Other people’s money; a study in the social psychology of embezzlement. Glencoe, IL, Free Press.
  6. Fajri, S. N. (2018). The effect of financial stability, external pressure, personal financial need, financial targets, ineffective monitoring and audit quality on detecting fraud financial statement in perspective of fraud triangle. Journal of Business Economics, 23(2), 191–99.
  7. Financial Accounting Standard Board (FASB). (1980). Statement of Financial Accounting Concepts (SFAC) No. 4.
  8. Hamdani, R., & Albar, A. R. (2016). Internal controls in fraud prevention effort: a case study. Jurnal Akuntansi & Auditing Indonesia, 20(2), 127–135.
  9. Janrosl, V. S. E, & Yuliadi. (2019). Analisis faktor - faktor yang mempengaruhi financial statement fraud pada perusahaan perbankan. Jurnal Akuntansi Keuangan dan Bisnis, 12(1), 1–8.
  10. Jao, R., Mardiana, A., Holly, A., & Chandra, E. (2021). Pengaruh financial target dan financial stability terhadap financial statement fraud. YUME: Journal of Management, 4(1), 27–42.
  11. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
  12. Kayoi, S. A., & Fuad. (2019). Faktor-faktor yang mempengaruhi financial statement fraud ditinjau dari fraud triangle pada perusahaan manufaktur di Bursa Efek Indonesia periode 2015-2017. Diponegoro Journal of Accounting, 8(4), 1–13.
  13. Listyawati, I. (2016). Analisis faktor yang mempengaruhi financial statement fraud. Proceeding SENDI_U. Retrieved from
  14. Loebbecke. (1989). Auditors experience with material irregularities-frequency, nature, and detectability. Auditing-A Journal of Practice & Theory, 9(1), 1-28.
  15. Norbarani, L., & Rahardjo, S. N. (2012). Pendeteksian kecurangan laporan keuangan dengan analisis fraud triangle yang diadopsi dalam SAS No.99. Skripsi, Fakultas Ekonomika dan Bisnis, Universitas Diponegoro.
  16. Nuryuliza, S., & Triyanto, D. N. (2019). Pengaruh fraud triangle terhadap kecurangan laporan keuangan (studi empiris pada perusahaan sektor pertambangan yang terdaftar di Bursa Efek Indonesia Periode 2015-2017). e-Proceeding of Management, 6(2), 3157–3166.
  17. Pratiya, M. A. M., Susetyo, B., & Mubarok, A. (2018). Pengaruh stabilitas keuangan, target keuangan tingkat kinerja, rasio perputaran aset, keahlian keuangan komite audit, dan profitabilitas terhadap fraudulent financial statement. Permana, 10(1), 116–131.
  18. Priantara, D. (2013). Fraud Auditing & Investigation. Jakarta: Mitra Wacana Media.
  19. Rachmania, A., Slamet, B., & Iryani, L. D. (2017). Analisis pengaruh fraud triangle terhadap kecurangan laporan keuangan pada perusahaan makanan dan minuman yang terdaftar di Bursa Efek Indonesia periode 2013-2015. Jurnal Online Mahasiswa (JOM) Bidang Akuntansi, 4(2), 1–19.
  20. Rahmanti, M. M., & Daljono. (2013). Pendeteksian kecurangan laporan keuangan melalui faktor risiko tekanan dan peluang (studi kasus pada perusahaan yang mendapat sanksi dari Bapepam periode 2002-2006). Diponegoro Journal of Accounting, 2(2), 1-12.
  21. Rezaee, Z., & Riley, R. (2002). Financial statement fraud: Prevention and detection. NY: John Wiley & Sons.
  22. Rianti, N. (2020). Pengaruh fraud triangle terhadap financial statement fraud pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia periode 2016-2018. Skripsi, Institut Bisnis dan Informatika Kwik Kian Gie, Jakarta.
  23. Salim, V. A., & Riady, R. (2021). Pengaruh profitabilitas, likuiditas dan faktor lainnya terhadap fraudulent financial statement. E-Jurnal Akuntansi TSM, 1(3), 251-264.
  24. Santoso, B. (2015). Keagenan (agency): prinsip-prinsip dasar, teori, dan problematika hukum keagenan. Bogor: Ghalia Indonesia.
  25. Santoso, N. T., & Surenggono. (2018). Predicting Financial Statement Fraud with Fraud Diamond Model of Manufacturing Companies Listed in Indonesia. In: Said, R., Mohd Sidek, N., Azhar, Z., Anuar Kamarudin, K. (eds) State-of-the-Art Theories and Empirical Evidence. Springer, Singapore.
  26. Sasongko, N., Nurmulina, A., & Fernandez, D. (2019). Analysis of fraud factors in financial statement fraud. The Journal of Social Sciences Research, 5(4), 918–923.
  27. 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. Advances in Financial Economics, in: Corporate Governance and Firm Performance, (pp. 53-81), Emerald Group Publishing Limited.