<![CDATA[This study examines the influence of Fraud Heptagon elements on fraudulent financial statements in financial sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The study is motivated by the increasing prevalence of financial statement fraud cases in Indonesia's financial sector and the need to understand the determinants of fraudulent reporting within the comprehensive Fraud Heptagon framework. The sample consists of 168 firm-year observations obtained from 42 financial sector companies selected using purposive sampling. Panel data regression with EViews 12 was employed to test the proposed hypotheses across eleven variables: financial target, external pressure, financial stability, personal financial need, change in director, effective monitoring, nature of industry, change in auditor, number of CEO pictures, ignorance, and greed. The results indicate that financial target and nature of industry have a significant positive effect on fraudulent financial statements, suggesting that aggressive performance targets and industry-specific characteristics increase the likelihood of financial manipulation. In contrast, external pressure, financial stability, personal financial need, change in director, effective monitoring, change in auditor, number of CEO pictures, ignorance, and greed do not significantly influence fraudulent financial statements. These findings suggest that not all Fraud Heptagon elements equally influence fraudulent reporting, providing insights for regulators and practitioners in strengthening fraud detection and prevention mechanisms in the financial sector.]]>
Copyrights © 2026
