Analysis of Bankruptcy Risk during the Pandemic on the Tendency of Financial Report Fraud through Profit Manipulation

Abstract

This research aims to find empirical evidence of the link between bankruptcy risk and the tendency for fraud in financial reports through earnings manipulation during the pandemic. The measurement of the bankruptcy risk variable in this study uses the Z-Score because this model can be used by all types of companies, the earnings manipulation variable is measured using the Conditional Revenue Model because this model is better able to detect earnings management than previous measurement models, and the measurement of financial statement fraud variables in This research uses the F-Score Model because this model has higher sensitivity in detecting fraud. The results of this research found that during the pandemic, the risk of bankruptcy influenced the tendency for fraudulent financial reports through profit manipulation.