Asia Pacific Fraud Journal
Vol. 8 No. 1: Volume 8, No. 1st Edition (January-June 2023)

Forecasting the Prospect of the Future Business Growth and Detecting Distorted Earnings in Public Insurance Industry: The Voice from Indonesia

Ahmad Abbas (Department of Sharia and Islamic Business Economics, Sekolah Tinggi Agama Islam Negeri Majene)
Neks Triani (Department of Accounting, Universitas Sembilanbelas November Kolaka)
Sasmita Nabila Syahrir (Department of Accounting, Universitas Sembilanbelas November Kolaka)



Article Info

Publish Date
30 Jun 2023

Abstract

Insurance firms nowadays become a highlight for society after some cases of payment failure in Indonesia occur such as Jiwasraya, and Bumi Putera. It may decrease public trust in the prospect of the insurance business in the future. This research aims to demonstrate the future growth of the insurance business performances in Indonesia and detect distorted earnings. Afterward, the future growth yielded by firms between distorted and non-distorted earnings is tested in this research. The sample was public insurance firms in Indonesia. Financial data were analyzed using Autoregressive Integrated Moving Average (ARIMA) for forecasting future growth, meanwhile, the nexus between variables was tested using a logistic regression model of panel data. The result found that the prospect of insurance firms will be growing with positive and negative values. They will pull through the ups and downs of business over the period of 2021 to 2027. This research further detected the distorted earnings in the insurance business performances and found that the future growth yielded by firms with distorted earnings has no difference from non-distorted earnings. The finding is addressed to the insurance companies as input. They need to prepare their business from now by increasing their performance. This finding is considered as the means of rebuilding their trust in the growth of the insurance business and providing the answer to society regarding the insurance business prospect in the future.

Copyrights © 2023






Journal Info

Abbrev

apf

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

ASIA PACIFIC FRAUD JOURNAL (APFJ) firstly published by Association of Certified Fraud Examiners (ACFE) Indonesia Chapter in 2016. APFJ registered on CrossRef, then every article published di APFJ has Digital Object Identifier (DOI). APFJ published research and review articles. APFJ also published ...