The Likelihood of Fraud from The Fraud Hexagon Perspective: Evidence from Indonesia

Fraudulence can cause financial loss and investor mistrust. Fraud is not only unethical but also a punishable sin. As the impact is enormous, it is crucial to examine what factors motivate or impact a company to commit fraud. Literature has archived several models to explain elements of fraudulent activities, such as the Fraud Triangle, Fraud Diamond, and Fraud Pentagon. Georgios L. Vousinas introduced the fraud hexagon in 2019, the latest model exhibiting six factors that motivate companies to commit fraud. This model consists of stimulus (pressure), capability, collusion, opportunity, rationalization, and ego (arrogance). This research aims to examine the effect of the fraud hexagon elements on the likelihood of fraud. Seventy-six manufacturing firms listed on the Indonesia Stock Exchange during 2015-2019 were chosen to be included in the sample. This study uses the Beneish M-Score model to separate companies likely to commit fraud. Logistic regression analysis was then used to test the hypothesis. The findings indicate that stimulus impacts the likelihood of fraud.&nbsp

Do fraud hexagon components promote fraud in indonesia?

This study provides information about the likelihood of the nature of fraud companies so that investors and stakeholders can make better decisions. The Beneish model and the fraud theory are two well-developed ideas for understanding fraud motivations and detecting earnings manipulation in a corporation. Unlike previous studies using the fraud triangle, this study uses the latest theory (the fraud hexagon) perspective to detect fraud actions. Thus, this study aims to examine the applicability of the fraud hexagon components in combination with the M-score from the Beneish model. Seventy-six manufacturing firms listed on Indonesia Stock Exchange from 2015 to 2019 were chosen as samples. The findings confirmed that enterprises with fraud tend to: be more financially stable, be more leveraged, have higher profitability, have cooperation projects with the government, have more related-party transactions, have more auditor changes, be less liquid, less changing directors, be less supervised, and less display CEO.?s picture

Pengaruh Kepatuhan Wajib Pajak, Pemeriksaan Pajak, dan Pemungutan Pajak terhadap Penerimaan Pajak Penghasilan Badan

ABSTRACT Taxes play a crucial role in the life of the state, especially in the implementation of state’s development because taxes are the main source of state income. For this reason, the realization of the tax revenue target must be achieved. Therefore, a study to identify factors which can influence tax revenue is important to conduct. This study aims to examine the effect of three factors (taxpayer’s compliance, tax audit and tax collection) toward corporate income tax revenue. This study uses secondary data obtained from Tax Office Jakarta Sawah Besar Satu with a time span of 2015-2019. This research is conducted by using a multiple linear regression analysis model. The result of this study reveals that taxpayer’s compliance and tax collection have a significant and positive effect on corporate income tax revenue, while tax audits have no significant effect on corporate income tax revenue at Tax Office Jakarta Sawah Besar Satu. ABSTRAK Pajak memegang peranan penting dalam kehidupan bernegara terutama dalam pelaksanaan pembangunan negara karena pajak merupakan sumber utama pendapatan. Untuk itu, realisasi target pendapatan pajak harus dapat tercapai. Oleh karena itu, penelitian untuk mengidentifikasi faktor-faktor yang dapat mempengaruhi pendapatan pajak penting untuk dilakukan. Penelitian ini bertujuan untuk menguji pengaruh tiga faktor (kepatuhan wajib pajak, pemeriksaan pajak dan pemungutan pajak) terhadap pendapatan pajak penghasilan badan. Penelitian ini menggunakan data sekunder yang diperoleh dari Kantor Pelayanan Pajak Pratama Jakarta Sawah Besar Satu dengan rentang waktu 2015-2019. Penelitian ini dilakukan dengan menggunakan model analisis regresi linier berganda. Hasil penelitian ini mengungkapkan bahwa kepatuhan wajib pajak dan penagihan pajak berpengaruh signifikan dan positif terhadap pendapatan pajak penghasilan badan, sedangkan pemeriksaan pajak tidak berpengaruh signifikan terhadap pendapatan pajak penghasilan badan pada Kantor Pelayanan Pajak Pratama Jakarta Sawah Besar Sat

Etikonomi : jurnal ekonomi volume 21 (2) 2022

iii, 440 hlm, 29,4 x 20,7 c