<![CDATA[Purpose – This study examines whether Fraud Heptagon dimensions (pressure, opportunity, rationalization, capability, arrogance, ignorance, greed) are associated with tax avoidance, and whether tax avoidance is associated with financial reporting fraud risk (FRFR). It also tests industry characteristics as a moderator and tax avoidance as an indirect associative pathway. Methods – A cross-sectional SEM-PLS design with 5,000 bootstrap resamples is applied to 360 Indonesian public firms in 2025. Tax avoidance is measured using the Effective Tax Rate (ETR); FRFR is proxied by the Beneish M-score. Industry characteristics is a formative composite reflecting regulatory intensity, complexity, and competition. Findings – Pressure (β = 0.21), opportunity (β = 0.18), rationalization (β = 0.24), and greed (β = 0.19) are positively associated with tax avoidance (all p < 0.01), while capability, arrogance, and ignorance are not significantly associated. Tax avoidance is positively associated with FRFR (β = 0.32; p < 0.001), and industry characteristics strengthen this association (β = 0.14; p = 0.027). Indirect associations via tax avoidance are significant for pressure, opportunity, rationalisation, and greed. Research implications – Tax avoidance may serve as a selective indirect pathway from selected fraud-related dimensions to reporting risk. However, the cross-sectional design and proxy measures constrain causal claims and generalisability. Originality – This study advances the Fraud Heptagon framing by positioning tax avoidance as a selective indirect pathway through certain dimensions and industry context. Conceptually, the model extends earlier fraud frameworks by adding arrogance, ignorance, and greed as separate archival proxies, not as a validated higher-order construct.]]>
