Author

  • Ana Mardiana

    • Hasanuddin University, Makassar, Indonesia
    • Indonesia

Abstract

This study empirically examine the influence of ownership, accountant public office and the financial distress on fraudulent financial reporting. The variables studied were foreign ownership, family ownership, accountant public office and the financial distress of public companies in Indonesia in 2009 to 2012. The research was conducted by quantitative methods using secondary data. Secondary data comes from a list of cases Bapepam-LK and the annual reports listed companies on the Stock Exchange. This population of study was company listed on the Stock Exchange, and then the samples were taken by purposive sampling criteria the company's corporate criteria sanctioned Bapepam-LK and the sanctions contained elements of fraud, including the non-financial corporate sector and have the data required in this study. At the end, the total sample of 64 companies that the company. This study uses logistic regression statistical tools as the dependent variable is a dummy variable (non-metric), while the independent variable is a variable mixture of metric and non-metric. The results show that the family ownership significantly affect financial reporting fraud but in the opposite direction because of the negative impact. Foreign ownership of a significant negative effect on fraudulent financial reporting. This indicates the greater ownership by the family, the lower the level of financial of fraudulent reporting accountant public office has no effect on fraudulent financial reporting. This occurs because both KAP Big Four and Small Firm have the same standards in Generally Accepted Accounting Principles (GAAP) in carrying out their duties as auditor. Financial distress negatively affects fraudulent financial reporting.

Keywords

References

  • Anggraini, R. (2011). Pengaruh Kepemilikan Institusional dan Kepemilikan Asing Terhadap Pengungkapan Pertanggungjawaban Sosial Perusahaan dalam Annual Report. Skripsi. Universitas Dipongero. Semarang
  • Altman, E. (1968). Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy. Journal of Finance, 2, 589-609
  • Candrawati, A. (2008). Analisis Faktor-Faktor yang Mempengaruhi Keberhasilan Turnround Pada Perusahaan yang Mengalami Financial Distress. Thesis. Universitas Diponegoro. Semarang
  • Carcello, J. V. (2004). Audit Firm Tenure and Fraudulent Financial Reporting. University of Missouri’s. United States of America.
  • Chen, L., Yue, M. & Dongwei, S. (2006). Corporate Governance and Firm Efficiency: Evidence from China’s Publicly Listed Firms. Institute of Humanities and Social Sciences at Universities and the Innovative Research Team Project of Jinan University
  • De Angelo, L. E. (1981). Auditor Size and Audit Quality. Journal of Accounting & Economics, 3(1).
  • Hambrick & Mason. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. The Academy of Management Review, 9(2).
  • Hasnan, S., Rashidah, A. R. & Mahenthiran, S. (2008). Management Predisposition, Motive, Opportunity, and Earning Management for Fraudulent Financial Reporting in Malaysia.
  • Indriantoro, N. & Supomo, B. (1999). Metodologi Penelitian Bisnis. BPFE-Yogyakarta.
  • Intal, T. & Do, L. (2002). Recognition of Revenue and the Auditor’s Responsibility for Detecting Financial Statement Fraud. Accounting and Financial. Master Thesis, No.2002:53
  • Jensen, M. C. & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(3).
  • Morck, R. & Young, B. (2003). Special Issues Relating To Corporate Governance and Family Control. Global Corporate Governance Forum
  • Nurharyanto. (2011). Memahami Fraud dan Melaksanakan Investigative Audit Pada Perusahaan /Korporasi (Teori dan Aplikasinya). Lembaga Pengembangan Fraud Auditing
  • Novianti, S. & Irianto, G. (2012). Tenur Akuntan Publik, Tenur Partner Audit, Auditor Spesialisasi Industri, dan Kualitas Audit. Makalah. Simposium Nasional Akuntansi. Universitas Brawijaya. Surabaya
  • Simbolon, A. H. (2010). Mengupas Seluk Beluk Fraud dan Cara mengatasinya. Akuntansi Bisnis
  • Sulistiawan & Yeni, J. (2011). Creative Accounting. Jakarta: Salemba Empat
  • Skousen, J. C. & Wright, J. C. (2009). Detecting and Predicting Financial Statement Fraud: The Effectiveness of The Fraud Triangle and SAS No. 99. Advances in Financial Economics, 13(2).
  • Soselisa, R. & Mukhlasin, L. (2008). Pengaruh Faktor Kultur Organisasi, Manajemen, Strategik Keuangan, dan Auditor terhadap Kecenderungan Kecurangan Akuntansi Pada Perusahaan Publik di Indonesia. Thesis. Unika Atma Jaya Jakarta.
  • Reskino. (2002). Profesi Akuntan Publik. Makalah. Pusat Pengembangan Bahan Ajar. Universitas Mercu Buana.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Mardiana, A. (2015). Effect Ownership, Accountant Public Office, and Financial Distress to the Public Company Financial Fraudulent Reporting in Indonesia. Journal of Economics and Behavioral Studies, 7(2(J), 109-115. https://doi.org/10.22610/jebs.v7i2(J).568

Share this article

License

Copyright (c) 2015 Ana Mardiana (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 7 No. 2(J) (2015) Banking, Fraud & Behavioural Finance View issue contents

Published

2015-04-30

Submissions

Have research to publish? Journal of Economics and Behavioral Studies welcomes submissions.

Make a Submission