Corporate Governance, Quality of Financial Statements, Firm Size, and Financial Stability on Fraudulent Financial Reporting on Listed Indonesia Stock Exchange Banking Institutions

Abstract

This study examines the impact of corporate governance, quality of financial statements, firm size, and financial stability on fraudulent financial reporting at bank financial institutions listed on the Indonesia Stock Exchange from 2014 to 2017. Beneish M-Score measures fraudulent financial reporting. Sample selection uses purposive sampling consisting of 172 observations. Logistic regression is used as an analysis technique. Testing results showed that audit committee, quality of financial statements, Firm size, and financial stability affect fraudulent financial reporting. At the same time, independent commissioners have no impact on fraudulent financial reporting.