The Impact of the Fraud Triangle and Corporate Governance on Financial Statement Fraud at Metal and Mineral Companies Listed on the Indonesia Stock Exchange for the 2020–2024 Period
Article Sidebar
Main Article Content
Abstract
This study examines the effect of the Fraud Triangle (Pressure, Rationalization, Opportunity) and corporate governance mechanisms—Rights and Equitable Treatment of Shareholders, Sustainability and Resilience, Disclosure and Transparency, and Responsibility of the Board—on Financial Statement Fraud (FSF) in listed metals and minerals companies on the Indonesia Stock Exchange. Using a quantitative approach with 90 firm-year observations from 2020 to 2024, FSF was measured using the Beneish M-Score and analyzed through logistic regression. The results reveal that only Pressure has a significant positive effect, while Disclosure and Transparency has a significant negative effect on fraud likelihood. Rationalization, Opportunity, and the remaining governance variables are not statistically significant. The model demonstrates an adequate fit, as indicated by a Nagelkerke R² value of 23.56%. These findings provide partial support for the Fraud Triangle and agency theory, suggesting that in emerging markets, pressure dominates as the primary fraud driver while transparency effectively deters fraudulent reporting. The study offers practical implications for prioritizing pressure monitoring and strengthening disclosure practices as strategic fraud prevention tools.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Adha, A., & Indrayani, E. (2024). Fraud Triangle Analysis Detects Fraudulent Financial Statements Using A Fraud Score Model from BUMN Bank 2012-2022. Ilomata International Journal of Management, 5(2), 375–388. https://doi.org/10.61194/ijjm.v5i2.1101
Almalita, Y. (2025). Decoding Financial Fraud: The Impact of Corporate Governance and the Fraud Triangle on F-Score. Global Research Review in Business and Economics, 11(2). https://doi.org/10.56805/grrbe
Amalia, M. R., Yusnaini, E., & Sari, R. (2025). The Effect of Fraud Hexagon on Fraudulent Financial Reporting with Accounting Complexity as a Moderating Variable in Financial Sector Companies. Journal of Management and Finance Economics Studies , 8(12), 8214–8223. https://doi.org/10.47191/jefms/v8
Apristiana, A. A. (2025). Corporate Governance and Fraud: A Systematic Review. Diponegoro University.
Arum, E. D. P., Alfaridzi, H., Wijaya, R., Wiralestari, Brilliant, A. B., & Wahyudi, I. (2026). Internal Motivations Versus External Deterrence: Validating GONE Theory on Financial Statement Fraud in an Emerging Market. Journal of Risk and Financial Management, 19(8). https://doi.org/10.3390/jrfm19080596
Arum, E. D. P., & Wendry, W. S. (2024). Board Characteristics and Financial Statement Fraud: Evidence from Indonesian Public Companies. Journal of Management World, 2024(5), 61–68. https://doi.org/10.53935/jomw.v2024i4.742
Committee of Sponsoring Organizations. (2016). Fraud Risk Management Guide Executive Summary. https://www.coso.org/frauddeterrence
Devi, P. V. S. (2024). Corporate Governance as a Detector of Financial Statement Fraud: Systematic Literature Review. Asia Pacific Fraud Journal, 9(1), 37–47. https://doi.org/10.21532/apfjournal.v9i1.342
Dwinanda, R. R., & Utama, A. A. G. S. (2025). The Role of Corporate Governance in Financial Fraud Prevention: A Systematic Literature Review. Nominal: Barometer Riset Akuntansi Dan Manajemen, 14(2), 150–163. https://doi.org/10.21831/nominal.v14i2.81860
Ebaid, I. E.-S. (2023). Board characteristics and the likelihood of financial statements fraud: empirical evidence from an emerging market. Future Business Journal, 9(1). https://doi.org/10.1186/s43093-023-00218-z
Faliana, R., & Utami, W. (2021). Corporate Governance Disclosure and Earnings Quality: Study On Companies Listed on The ASEAN Star Financial Times Stock Exchange (FTSE). Asia-Pacific Management Accounting Journal, 16(2). https://doi.org/10.24191/APMAJ.V16i2-08
Gading, A. E., Handayani, S., Sitepu, A. M., Simanjorang, M., & Supraja, G. (2024). Peran Fraud Triangle terhadap Kecurangan Laporan Keuangan. GOVERNANCE: Jurnal Ilmiah Kajian Politik Lokal Dan Pembaungan, 11(2), 210–215.
Harjanto, A. P., & Nursyifa, M. R. (2026). Fraud Heptagon and Fraudulent Financial Reporting: The Moderating Role of Internal Control. Agregat: Jurnal Ekonomi Dan Bisnis, 10(2), 626–644. https://doi.org/10.22236/agregat_vol10.i2/23804
Herawati, R., Chasanah, A. N., Wardani, M. F., & Budiantoro, R. A. (2022). Pengaruh Faktor – Faktor dalam Perspektif Fraud Triangle terhadap Kecurangan Pelaporan Keuangan. BISECER (Business Economic Entrepreneurship), 5(1), 1–18.
Indonesia Stock Exchange. (2021). IDX Annually Statistic 2020.
International Auditing and Assurance Standards Board. (2025). Final Pronouncement Statement on Auditing Standards 240 (Revised). https://ifacweb.blob.core.windows.net/publicfiles/2025-07/IAASB-ISA-240-Revised-Fraud.pdf
Narsa, N. P. D. R. H., Afifa, L. M. E., & Wardhaningrum, O. A. (2023). Fraud triangle and earnings management based on the modified M-score: A study on manufacturing company in Indonesia. Heliyon, 9(2). https://doi.org/10.1016/j.heliyon.2023.e13649
Novita, S., Widyastuti, T., & Darmansyah, D. (2025). The Influence of Fraud Heptagon, Audit Report Lag, and Whistleblowing System on Financial Statement Fraud with Good Corporate Governance as a Moderating Variable: Evidence from Indonesian Manufacturing Companies. International Journal of Current Science Research and Review, 08(11). https://doi.org/10.47191/ijcsrr/V8-i11-26
Nurhidayati, N., & Hidayat, F. (2022). Bagaimana pengaruh corporate governance terhadap praktik fraud? Jurnal Akuntansi Aktual, 9(1), 65–76. https://doi.org/10.17977/um004v9i12022p065
Organisation for Economic Co-operation and Development. (2026). Anti-Corruption and Integrity Outlook 2026. https://doi.org/10.1787/16708b78-en
Rahayuningsih, B. (2021). Determinan Fraudulent Financial Statement pada Perusahaan yang Menerapkan ASEAN Corporate Governance Scorecard dalam Perspektif Fraud Pentagon Theory. Universitas Negeri Semarang.
Rahman, E., Setiawan, A., & Djajadikerta, H. (2024). Financial Statement Fraud a Systematic Literature Review. Jurnal Ekonomi Dan Bisnis, 27(2), 195–212. www.jurnal.unikal.ac.id/index.php/jebi
Ramadanti, A. N. (2025). Pengaruh Sustainability Disclosure terhadap Earnings Management: Studi pada Perusahaan Sektor Energi di ASEAN Tahun 2021-2023. Universitas Islam Negeri (UIN) Maulana Malik Ibrahim Malang.
Saikhu, S., Suhardjanto, D., Probohudono, A. N., & Widarjo, W. (2025). A systematic review of fraud: an overview of state-owned enterprises. In Cogent Business and Management (Vol. 12, Number 1). Cogent OA. https://doi.org/10.1080/23311975.2025.2518493
Satria, M. T., Nuryani, N., & Arifin, Z. (2026). Pengaruh Kualitas Audit dan Efektivitas Tata Kelola Perusahaan terhadap Kecurangan Laporan Keuangan pada Perusahaan Energi yang Terdaftar di Bursa Efek Indonesia. Bata Ilyas Journal of Accounting, 7(2), 227–235.
Schuchter, A., & Levi, M. (2016). The Fraud Triangle revisited. Security Journal, 29(2), 107–121. https://doi.org/10.1057/sj.2013.1
Siregar, P., Kesuma, S. A., Muda, I., & Syarif, F. (2026). A Systematic Literature Review of the Fraud Triangle Theory (2020-2025). Jurnal EMT KITA, 10(1), 504–511. https://doi.org/10.35870/emt.v10i1.5818
Syafiqoh, H. N., & Harjanto, A. P. (2025). The Effect of Fraud Heptagon Theory on The Effect of Fraud Heptagon Theory on Fraudulent Financial Statements with Fraudulent Financial Statements with Managerial Ownership as A Moderating Managerial Ownership as A Moderating Variable Variable. Riset Akuntansi Dan Keuangan Indonesia, 11(1), 43–61. http://journals.ums.ac.id/index.php/reaksi/index
Tanjaya, A., & Kwarto, F. (2022). Tata Kelola Perusahaan Dalam Mengurangi Kecurangan Laporan Keuangan (Systematic Literature Review Dengan Metode Meta Sintesis). Jurnal Akademi Akuntansi, 5(3), 312–332. https://doi.org/10.22219/jaa.v5i3.21248
Thanh, C. N., & Huy, T. P. (2025). Predicting financial reports fraud by machine learning: the proxy of auditor opinions. Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2025.2510556
Tobuhu, C. A., Roeroe, S. D. L., & Tinangon, E. N. (2025). Kewenangan Perizinan Pertambangan Pasca Perubahan Undang-Undang Mineral dan Batubara. Lex Crimen: Jurnal Elektronik Bagian Hukum Pidana, 14(2). https://ejournal.unsrat.ac.id/v3/index.php/lexcrimen/article/view/64937
Wahyutari, S., Triyono, & Witono, B. (2025). Financial signals and governance in fraud detection: Evidence from Indonesia’s energy sector using logistic regression and random forest. Journal of Advanced Sciences and Mathematics Education, 5(2), 447–458. https://doi.org/10.58524/jasme.v5i2.986
Williams, T. (2018). Role of Management, Corporate Governance, and Sarbanes-Oxley in Fraud: A Focus on the Precious Metals Industry. In Accounting, Finance, Sustainability, Governance and Fraud (pp. 391–409). Springer Nature. https://doi.org/10.1007/978-981-10-4502-8_16