Detection of Financial Statement Fraud on Property and Real Estate Companies Listed on IDX

Abstract

The purpose of this study aims to detect financial statement fraud in property and real estate companies listed on the Indonesia Stock Exchange from 2015 to 2020. The type of data in this study is secondary data. The sampling method used is purposive sampling with a total sample of 43 companies. The data analysis technique uses the Beneish Model which consists of the Beneish Ratio Index and the Beneish M-Score. The results showed that there were 21 companies indicated as manipulators in 2016, 26 companies indicated as manipulators in 2017, 21 companies indicated as manipulators in 2018, 17 companies indicated as manipulators in 2019, and 14 companies indicated as manipulators in 2020. There were 22 companies indicated as non-manipulators in 2016, 17 companies indicated as non-manipulators in 2017, 22 companies indicated as non-manipulators in 2018, 26 companies indicated as non-manipulators in 2019, and 29 companies indicated as non-manipulators in 2020. There are no companies indicated as gray companies. The results also show that property and real estate companies listed on the Indonesia Stock Exchange experience earning manipulation, and the growth rate of financial statement fraud has decreased from 2016 to 2020. Keywords: financial statement fraud, beneish ratio index, beneish m-score, earning manipulation.