The Influence of Financial Distress and Audit Committee on Fraudulent Financial Reporting Moderating by Good Corporate Governance

International Journal of Economics and Management Studies

© 2021 by SSRG - IJEMS Journal

Volume 8 Issue 7

Year of Publication : 2021

Authors : Annisa Salsabilla Rainingtyas, Haryono Umar, Agustina Indriani

10.14445/23939125/IJEMS-V8I7P107

How to Cite?

Annisa Salsabilla Rainingtyas, Haryono Umar, Agustina Indriani, "The Influence of Financial Distress and Audit Committee on Fraudulent Financial Reporting Moderating by Good Corporate Governance," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 7, pp. 59-70, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I7P107

Abstract:

The purpose of this study is to analyze the influence of financial distress and audit committee on fraudulent financial reporting moderating by good corporate governance. The sample used in this study are 13 manufacturing companies, specifically in the consumer goods sector for the period of 2017 - 2019. The data used in this study was obtained from the company's financial statements and annual reports of listed manufacturing companies on the Indonesia Stock Exchange (IDX). The sampling technique used is the purposive sampling method. The analysis technique used in the study is multiple regression analysis. The result of the study found that financial distress has a significant positive influence on fraudulent financial reporting. Meanwhile, the audit committee has a significant negative influence on fraudulent financial reporting. Good corporate governance weakens the positive influence of financial distress and has moderated financial distress on fraudulent financial reporting. Meanwhile, good corporate governance weakens the negative influence of the audit committee and has no moderates audit committee on fraudulent financial reporting

Keywords:

Fraudulent Financial Reporting, Financial Distress, Audit Committee, Financial Expertise of Audit Committee, Good Corporate Governance.

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