Abstract:

This research objective is to obtain empirical proof regarding the effect of opportunity, lack of integrity, and business complexity on fraudulent financial reporting (FFR). This research employs analysis of panel data regression as a data analysis technique. A total of 635 samples were employed in this study consisting of 127 manufacturing corporates registered on the IDX (Indonesia Stock Exchange) from 2015 until 2019. The research findings indicate that opportunity does not have a positive effect on FFR, lack of integrity has a positive effect on FFR, business complexity has a positive effect on FFR. The findings for the control variables show that in this study, debt to equity ratio (DER), capital turnover, and return on assets (ROA) have an effect on FFR. While the control variables of firm size and profitability have no effect on FFR.