EKO SUDARMANTO,TRIANA ZUHROTUN AULIA,INDRA GUNAWAN SIREGAR
DOI: https://doi.org/This paper analyzes the relevance of the Fraud Hexagon framework in understanding financial statement fraud within publicly listed Indonesian property and real estate companies. Specifically, six explanatory variables are analyzed: financial stability, education and professional experience, political connections, industry characteristics, auditor turnover, and management ownership. In addition, the role of independent commissioners is evaluated as a moderating variable. Using the Beneish M-Score model, this study examines 25 companies for indicators of fraud from 2019 to 2023. The results show that industry nature and management ownership are the main drivers of financial statement fraud, while financial stability, education, experience, political connections, and auditor turnover do not show a significant influence. Having independent commissioners is demonstrated to effectively reduce the influence of industry characteristics and management ownership on financial statement fraud. These results point to the significance of strong corporate governance, particularly through the role of independent commissioners, to prevent misleading financial reporting practices.
