<![CDATA[To understand what drives financial statement fraud, this study analyzes the Fraud Pentagon elements within 18 transportation and logistics companies listed on the Indonesia Stock Exchange (2020–2024), positioning sustainability disclosure as a potential moderator. By evaluating 90 firm-year observations through Moderated Regression Analysis (MRA) and measuring fraud with the modified six-ratio Beneish M-Score, the findings reveal that only opportunity (p = 0.0422) and executive arrogance (p = 0.0010) directly trigger fraudulent reporting. Meanwhile, pressure, rationalization, competence, and sustainability disclosure alone do not show direct significant effects. Interestingly, rather than acting as a universal safeguard, sustainability disclosure specifically functions as a governance mechanism that successfully constrains the negative impact of executive arrogance on fraud (p = 0.0014). The data also indicates no meaningful differences in financial pressure, fraud incidence, or sustainability practices when comparing the COVID-19 era to the post-pandemic phase. Ultimately, by integrating ESG reporting into the Fraud Pentagon during an economic transition, this research highlights that corporate transparency is a targeted accountability tool rather than a blanket cure for all fraud risks.]]>
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