THE INFLUENCE OF THE FRAUD HEXAGON MODEL AND SALES GROWTH ON FRAUDULENT FINANCIAL STATEMENTS

Abstract

This study discusses the effect of fraud hexagon and sales growth on fraudulent financial statements. This study examines the impact of fraud hexagons such as pressure, opportunity, rationalization, capability, arrogance, collusion, and sales growth on fraudulent financial statements as measured using earning management. This study uses the population of all mining companies listed on the Indonesia Stock Exchange (IDX). Then the purposive sampling method was used, namely mining companies listed in the IDX anually statistics and published complete annual reports during the 2019-2022 period, so that a research sample of 26 companies was obtained. This research method uses secondary data sources, namely in the form of annual reports of mining companies. The data is processed using the classic assumption test method, regression model testing, and hypothesis testing. The results of this study prove that the fraud hexagon model (pressure, opportunity, rationalization, capability, arrogance, collusion) has no significant effect on fraudulent financial statements as measured by earning management. However, the sales growth variable influences fraudulent financial statements.