The Effect of Financial Stability, Financial Target, and Asset Composition on Fraudulent Financial Statement: Empirical study on food and staples retailing companies on the Indonesia Stock Exchange in 2017-2021

Abstract

The purpose of this study was to analyze the effect of financial stability, financial targets, and asset composition on the occurrence of fraudulent financial statements in retail food & staples companies listed on the Indonesia Stock Exchange for the 2017-2021 period. This study uses 10 companies from retail food \& staple companies listed on the Indonesia Stock Exchange with a sample selection method based on purposive sampling. Hypothesis analysis was tested using Eviews 9.0. The results of this study indicate that financial stability has an effect on fraudulent financial statements, while financial targets and asset composition have no effect on fraudulent financial statements. However, financial stability, financial targets, and asset composition simultaneously have a significant effect on fraudulent financial statements