DETEKSI FRAUDULENT FINANCIAL REPORTING: GABUNGAN MODEL BENEISH M-SCORE DAN ALTMAN Z-SCORE

Abstract

This study aims to provide empirical evidence of the influence of financial leverage ratios,
profitability, asset composition, and liquidity on fraudulent financial reporting). This study
uses agency theory and GONE theory. The population used is manufacturing companies
listed on the Indonesia Stock Exchange with an observation period of 2010-2021. The sample
used was 75 companies with a total of 207 observations. The dependent variable in this study
is fraudulent financial reporting which is a categorical variable that is a combination of the
Beneish M-Score and Altman Z-Score models and the independent variables used are the
ratio of financial leverage, profitability, asset composition, and liquidity. Testing the
hypothesis using logistic regression and the results of the study prove that profitability, asset
composition, and liquidity affect the probability of fraudulent financial reporting