Financial Targets Research Articles

FAKTOR POTENSIAL YANG BERPENGARUH TERHADAP KECURANGAN LAPORAN KEUANGAN

This research aims to determine the influence of financial targets, financial stability, external pressure, institutional ownership, and ineffective monitoring on indications of the condition of financial reports in manufacturing companies in the food and beverage industry sector. The population in this study used manufacturing companies in the food and beverage industry sector listed on the Indonesia Stock Exchange (BEI) during the 2019 - 2022 period. The sampling technique used purposive sampling technique and produced a sample of 40 companies. The data analysis techniques used are descriptive statistical analysis, pooling test, normality test, multicollinearity test, autocorrelation test, heteroscedasticity test, customized r2, F test, and t test. Based on the research results, it shows that financial targets, financial stability, external pressure, institutional ownership and ineffective monitoring have no effect on the condition of financial statements.

Analysis of Factors Influencing Financial Statement Fraud With Company Size As An Intervening Variable In The Stock Exchange of Thailand

This study aimed to analyze the factors that influence financial statement fraud with company size as an intervening variable. The data that used were financial statements (annual report) during 2015-2019. The sample method was purposive sampling. The whole samples consisted of 13 property and construction company that listed in Stock Exchange of Thailand. Data analysis technique that used was path analysis. The result showed that financial target and quality of external auditor have significant effect to company size, while ineffective monitoring, change of company director and the number of photos CEO have no significant effect. Quality of external auditor, change of company director and company size have significant effect to financial statement fraud, while financial target, ineffective monitoring and the number of photos CEO have no significant effect. Company size can be intervening variable between financial target, quality of external auditor and the number of photos CEO in financial statements to financial statement fraud.

Pengaruh Fraud Diamond Terhadap Kecurangan Laporan Keuangan

The aim of this research conducted to examine whether there is a partial or simultaneous influence of the fraud diamond theory, as proxied by financial target, ineffective monitoring, audit opinion, and change in director on fraudulent financial reporting of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2019-2020, the measurement of which is by using the fraud score model (F-Score). Purposive sampling method was used in this study, with sample criteria including manufacturers listed on the Indonesia Stock Exchange (IDX) in 2019-2020, companies that publish their annual reports on the IDX website, companies that presented financial reports in Rupiah, and companies that fully disclose data related to research variables. A sample of 15 companies was obtained based on these parameters. This research was conducted by the quantitative method, and the analysis strategy was multiple regression analysis with an SPSS testing device. According to the results, financial target and ineffective monitoring variables had a partial influence on fraudulent financial reporting, while audit opinion and changes in director had no partial effect. The results also showed that the four independent variables, namely financial targets, ineffective monitoring, audit opinion, and change of director had a simultaneous influence on fraudulent financial reporting.

Analisis Perbandingan Pengendalian Manajemen

The Internal Control System is a form of company that uses it for the purpose of controlling and classifying several functions in order to achieve company goals and run according to plan effectively and efficiently. In Indonesia, the internal control system adheres to the principles of the Committee of Sponsoring Organization of the Treadway Commission (COSO). The creation of this principle is a form of resistance to fraud which is currently rampant. In this analysis, researchers used descriptive qualitative method techniques. This research data was taken from primary data and interview techniques, observation and literature study. The results of this research analysis show that there are external and internal pressures and supervision is less effective so it is proven to have a big influence on the conditions that occur in financial reports. Meanwhile, the financial target variables, change of auditor, change of leadership were proven to have no positive effect on the condition of the financial statements. The variables pressure, opportunity, rationalization and ability simultaneously have a significant effect on the condition of the company's financial statements. In this research analysis, the main objective is to carry out an analysis of Fraud actions and describe the forms of Fraud prevention actions carried out in the company in accordance with the COSO principles that will be applied in the company.

The Impact of Pentagon's Fraud Elements on Predicting Financial Report Fraud

The present study aims to investigate the impact of fraudulent components within the Pentagon on its ability to predict the occurrence of financial report fraud. This research employs several independent variables, including financial targets, external pressure, liquidity, nature of the industry, audit opinion, proportion of independent commissioners, and a number of CEO photos, while the dependent variable is fraudulent financial reporting. This investigation employed data pertaining to manufacturing enterprises that were listed on the Indonesia Stock Exchange during the period spanning from 2018 to 2020. In this study, a total of 104 companies were sampled and a purposive sampling method was utilized to obtain 310 data points. The present investigation utilized a statistical tool known as multiple regression analysis. The findings of the present investigation demonstrate that both the financial target variables and the types of industries significantly adversely impact the occurrence of fraudulent financial reporting. Notably, the factors of external pressure, liquidity, audit opinion, the ratio of independent commissioners, and the quantity of CEO images appear to bear no influence on fraudulent financial reporting. Keywords: Fraud Pentagon, Fraudulent Financial Reporting, Financial Target

Moderasi Komite Audit Sebagai Peredam Kecurangan Pelaporan Keuangan

Financial statement manipulation is a form of fraud that can lead to losses in a company's performance. This study aims to assess the influence of factors in detecting fraudulent corporate financial statements. The research focuses on manufacturing companies listed on the Indonesia Stock Exchange for the period 2017 to 2021. The dependent variable used in this study is fraudulent financial reporting. The independent variables include pressure (comprising financial targets, financial stability, and external pressure), opportunity (comprising ineffective supervision and industry nature), rationalization (comprising auditor turnover and rationalization), competence (measured by director turnover), and arrogance (measured by the frequency of CEO photo appearances). Additionally, the Audit Committee is used as a moderating variable. The test results indicate that financial targets have a significant negative impact on fraudulent financial reporting, while financial stability has a significant positive influence. However, external pressure, ineffective supervision, industry nature, auditor turnover, rationalization, director turnover, and the frequency of CEO photo appearances do not significantly affect fraudulent financial reporting. The implications of this research highlight the importance for companies to carefully monitor and manage their financial targets to avoid fraudulent practices in financial reporting. Furthermore, the role of the Audit Committee in overseeing financial statements needs to be strengthened to mitigate the risk of fraud. The research methodology employed in this study involves panel data regression analysis to examine the influence of the mentioned variables on fraudulent financial reporting.

INDONESIA'S BANKING EXCELLENCE IN THE EYES OF CROWE'S FRAUD PENTAGON

Complex factors trigger fraud. The basic theory is the fraud triangle theory. Crowe (2011) developed the idea into a pentagon theory and found two other factors: arrogance and competence. This study aims to analyze each element of Crowe's Fraud pentagon theory to detect fraudulent financial statements. Various proxies were used: pressure (financial targets and stability; external pressure; institutional ownership), opportunity (number of audit committees and nature of the industry), rationalization (change in auditors and auditor opinion), competence (change in directors and ineffective monitoring), arrogance (picture of the number of CEOs). Seventy-six banking companies listed on the IDX from 2013 to 2017 became sample. A multiple regression model is used as technique analysis. The results showed that pressure, rationalization, and competence affected financial statement fraud (FSF). This influence is in a good tone. This research contributes to the development of the Crowe's Fraud pentagon and Indonesian banking governance.

Mendeteksi Faktor-faktor Pressure Terhadap Kecurangan Laporan Keuangan Menggunakan Artificial Neural Network

Fraudulent financial statements are the result of misstatements resulting from intentional acts or omissions, which could materially mislead readers of the financial statements. The focus in this research is to determine the most important pressure factors in detecting fraudulent financial statements. Pressure is one of the fraud risk factors in the fraud triangle. Pressure is a condition felt by management due to incentives to commit fraud, consisting of: financial stability by proxy (GPM, ACHANGE, SCHANGE, CATA, SALAR, SALTA, INVSAL), external pressure (LEV, FINANCE, FREEC), personal financial need (OSHIP), and financial target (ROA). Data collection method using secondary data on the manufacturing sector firms that are publicly listed on the Indonesia Stock Exchange in 2017-2021. The research method used is quantitative and the sampling method uses a purposive sampling technique, obtained 137 sample companies with 685 total data observed. Data were analyzed using an Artificial Neural Network. The findings indicated that the gross profit margin (GPM), cash flow from operating to total assets (CATA), demand for financing (FINANCE), leverage (LEV) and return on total assets (ROA) is the most important proxy in detecting fraudulent financial statement, while other proxies are not too important in detecting fraudulent financial statements.

The Net Zero Energy Building Definition Framework: An Overview Pathway to Enhancing Sustainable Development and Mitigating Climate Change in Morocco

Morocco's commitment to the Marrakech and Paris Agreements' sustainability goals necessitates the implementation of Net Zero Energy Building (NZEB) initiatives to mitigate climate change and promote sustainable development for the built environment industry. Utilizing Morocco's abundant solar resources, NZEBs aim to minimize energy use and carbon emissions in buildings, aligning with global climate objectives and enhancing economic stability through reduced energy costs. This approach aids Morocco in adapting to climate change and achieving international financial and environmental targets. This paper explores Morocco's energy strategy and the regulatory framework for Nearly Zero Energy Buildings, providing a NZEB definition, assessment metrics, and performance indicators, while addressing the challenges posed by existing laws on energy-efficient buildings.

Financial optimization modeling on asset liability management with weighted goal programming

Asset Liability Management (ALM) can be overseen using financial ratios derived from financial statements. These statements provide a comprehensive picture of a company's status and necessitate analysis to evaluate performance. This research aims to analyze financial ratios to describe the financial condition, measure business development over time, and evaluate the achievement of the company's objectives. An optimization analysis of financial ratios is performed using the Weighted Goal Programming (WGP) model, which addresses multiple objectives by applying weights based on their priorities. The Best-Worst Method (BWM) was used to determine the priority weights of deviation variables from each financial ratio target. Financial ratios were selected based on their impact on profit using factor analysis. The constructed WGP model aims to minimize deviations in Return on Assets, Operating Ratios, Operating Income Ratio, Total Assets Turnover, and Current Ratio. Computational calculations to solve the WGP model are performed using Python, with pseudocode provided. A case study on a company in the garment and textile sector was conducted and found that the Operating Ratio, Return on Assets, Operating Income Ratio, and Current Ratio still need improvement by developing strategies to achieve the targets. Sensitivity analysis was also employed to assess the resilience of the model in response to alterations in data.

ANALISIS FRAUD DIAMOND DALAM MENDETEKSI FRAUDULENT FINANCIAL STATEMENT

This study aims to analyze fraud diamonds in detecting fraudulent financial statements. This research was conducted using quantitative methods. In this study, the population was taken from banking companies listed on the Indonesia Stock Exchange (IDX) in 2018-2020. The type of data used in this study is secondary data, where this data comes from the company's financial statements. This study also used a purposive sampling method in selecting the sample and produced 41 banking companies over a period of 3 years with a total of 123 observed data samples. The analysis technique used by the authors in this research is the classical assumption test, and multiple linear regression tests. The test results in this study show that Financial Stability and Directors Change had no effect on Fraudulent Financial Statements, External Pressure and Ineffective Monitoring had negative effect on Fraudulent Financial Statements. Meanwhile, Financial Targets had a positive effect on Fraudulent Financial Statements.

Peluang Penerapan Beyond Budgeting sebagai Upaya Optimalisasi Manajemen Perusahaan Studi Kasus PT Asuransi Jasindo Syariah


 The insurance sector is important for the Indonesian economy. Insurance companies must be able to manage their budget well and precisely because otherwise it will result in company losses. Budgeting discrepancies will result in insurance companies having difficulty achieving financial targets, including providing claims. Therefore, this research aims to find out the comparison of the concepts of traditional budgeting and beyond budgeting and how company management performs using traditional budgeting. Apart from that, this research aims to find out how prepared the company is to implement beyond budgeting. This research is a qualitative research involving case studies conducted at PT. Jasindo Syariah Insurance. The data collection techniques used in this research include semi-structured interview techniques and data triangulation. Of the total of 12 beyond budgeting principles, the level of implementation varies. The Anticipation System principle has been implemented throughout the company. The principles of Governance, Accountability for Dynamic Results, Organizational Networks, Relative Targets and Resource Allocation have been partially implemented by the company. On the other hand, the principles of Manager Empowerment, Market Coordination, Supportive Leadership, Continuous Strategy Determination, Speed ​​of Information Distribution and Rewards are relatively small which have been implemented by companies. The research findings highlight the significant potential beyond budgeting for Jasindo Syariah Insurance Company.
 Keywords: Beyond budgeting, traditional budgeting.

Impact of COVID-19 Movement Restrictions on Mobile Financing Services (MFSs) in Bangladesh

According to the National Financial Inclusion Strategy (NFIS), Bangladesh aims to achieve a 100% financial inclusion target by 2026 through mobile financing services (MFSs). However, despite several efforts, the financial inclusion score remained only 53% at the end of 2021, compared to 50% in 2017. A substantial proportion of this growth came through MFSs during the COVID-19 pandemic. This article investigates the short-run and long-run influence of COVID-19 movement restriction orders on MFSs. An autoregressive distributed lag model (ARDL) is applied to the monthly transaction data over the period of December 2016 to May 2022 of the three most popular MFSs. Movement restriction orders are associated with a significant increase in person-to-person transactions (P2P) and person-to-business transactions (P2B) in the long run, but the effect is positive and statistically insignificant for remittance transfer. Furthermore, using the volume of ATM transactions as a measure of financial inclusion, this study confirms the crucial role of movement restriction orders in intensifying the financial inclusion of Bangladesh through MFSs. The coefficients of error correction models (ECM) indicate that policymakers must act promptly to develop actionable strategies to maintain the short run momentum of the demand for MFSs to achieve the national target.

THE EFFECT OF FRAUD HEXAGON ON FRAUDULENT FINANCIAL STATEMENTS: EMPIRICAL STUDY OF NON-CYCLICALS COMPANIES IN INDONESIA

This study aims to analyze the factors of hexagon fraud in detecting financial statement fraud in non-cyclical sector companies listed on the Indonesia Stock Exchange (IDX) for the 2020-2021. Based on the purposive sampling method, the number of companies sampled in this study was 33 research criteria of non-cyclical companies with a total of 66 observations. The results of this study found that the element of pressure proxied by government projects had a significant effect on fraudulent financial statements. Meanwhile, financial targets, financial stability, changes in directors, ineffective monitoring, change in auditors, frequent number of CEO's pictures, political connections, state-owned enterprises, and audit opinions have no significant effect on fraudulent financial reports in non-cyclicals sector companies listed on the IDX 2020-2021.

Difficulty of Sustainability Performance Targets in CEO Bonus Plans

Drawing on insights from goal-setting theory, we assert that performance targets are highly likely to be reached when they are set lower than prior performance. We hand-collect data on sustainability performance targets in S&P 500 CEO bonus plans. We find that these targets are set lower than prior performance, demonstrating that sustainability targets are not difficult for CEOs to achieve. We also compare the difficulty of sustainability performance targets in CEO bonus plans with that of financial performance targets, showing that sustainability targets are significantly less demanding. Furthermore, we observe that almost two-thirds of sustainability performance targets are realized at the end of the year, which creates a favorable impression of sustainability performance. By setting easy CEO sustainability performance targets, we contend that boards do not motivate high effort on sustainability performance. The implications of our findings are threefold: (1) boards should set more challenging sustainability performance targets in CEO pay to effectively govern corporate sustainability performance; (2) firm stakeholders should actively engage with boards to ensure CEO compensation appropriately incentivizes high performance on sustainability matters; (3) ESG (environmental, social, governance) investors should be cautious if comparing ex post realized sustainability performance to ex ante targets, as the information may be misleading.

Financial Literacy, Financial Technology, and Financial Satisfaction: Explorasi the Mediation Effect of Financial Inclusion

One crucial factor that affects a person's well-being is their level of financial satisfaction. This study aims to create a research model based on technology, financial literacy, financial inclusion, and financial satisfaction. This research data was obtained from questionnaires distributed to communities in Cilacap and Banyumas, consisting of 110 people. The data obtained were analyzed using SmartPLS Ver 3.2.9 software. The study shows that financial inclusion is driven by financial technology and financial literacy. There is a positive correlation between financial satisfaction and financial inclusion. Financial satisfaction and financial literacy are positively correlated. Nevertheless, there is no relationship between fintech and financial satisfaction. In addition, this study found that financial inclusion could mediate the relationship of financial technology to financial satisfaction. However, financial inclusion cannot mediate financial literacy with financial satisfaction. The results of this research are expected to be helpful for the community and government. The public can increase financial literacy and fintech to optimize financial inclusion. In addition to the community, the government or stakeholders also maximize the availability of access to various quality formal financial services to achieve a 90% financial inclusion index target in 2024 to improve public welfare. The results of this study can be a suggestion for future researchers to find several other factors that affect financial satisfaction.

Driving Revenues: How Makassar Raya Parking Sets Its Financial Targets

This study focuses on the financial management of parking revenues in Makassar City, particularly as it pertains to the standards set by Raya Regional Parking Company, City of Makassar. The aim is to scrutinize the established revenue targets and the actual implementation of parking tariffs, considering the Local Regulation No. 17 of 2006 and the financial relationship between central and regional governments as stipulated by Indonesian Law No. 1 of 2022. The research employs a qualitative methodology to delve into the intricacies of revenue management, compliance with parking locations, and the setting of parking tariffs. Primary and secondary data sources, including interviews with officials from Makassar Raya Regional Parking Company, City of Makassar, and other stakeholders, provide a foundation for the study. The interactive and ongoing analysis model facilitates the data reduction, presentation, and conclusion processes. Findings indicate that there is a discrepancy between the set revenue targets and actual realizations, with parking tariff enforcement demonstrating weaknesses, especially with unofficial parking attendants charging inconsistent fees. The study reveals that while annual targets are based on detailed revenue potential evaluations, quarterly reviews highlight shortcomings in achieving these goals. The study suggests the need for stricter enforcement and monitoring of parking management to meet revenue and dividend targets. Implementing an electronic parking system and incentivizing attendants to meet or exceed targets may enhance performance and revenue management. The collaboration with city government can align parking regulations with strategic revenue management goals while serving public interests.

Digital Transformation of Bank Syariah Indonesia Services and Its Impact on Financial Inclusion

Islamic financial inclusion is the openness of providing access and use of a variety of convenient and affordable financial services by sharia. In supporting the realization of the Sharia financial inclusion target and the Indonesian Sharia Banking Development Roadmap (RPSI) for 2020-2025, Bank Syariah Indonesia strives for customer convenience and comfort by providing access to various products and services digitally. The research method uses a type of qualitative descriptive research with a library research method. The types of data used are primary data and secondary, primary data obtained from BSI's official website and result reports, secondary data obtained from other people's research, documentation data, and studies relevant to this study. The purpose of the study was to determine 1) the level of financial literacy index and Islamic financial inclusion index in Indonesia. 2) to recognize Bank Syariah Indonesia's efforts in seeking Sharia financial inclusion targets and the Indonesian Sharia Banking Development Roadmap (RPSI) for 2020-2025. The results showed that the level of Islamic financial literacy and inclusion index in 2022 increased to 9.14% and 12.12% from the previous 8.93% and 9.10%

Analysis of Fraud Pentagon and Good Corporate Governance in Indonesian Financial Companies

This research will explore the practice of fraud on financial statement and the factors that affect according to Fraud Pentagon Theory using Good Corporate Governance (GCG) as a moderating variable. The research method uses in this study is associative which to examine the relationship to financial statement fraud and the elements that affect fraud are opportunities, pressure, rationalization, competence, and arrogance. Data in the form of secondary datatype obtained from IDX Statistics. Companies specialized in financial sector in which listed on the Indonesia Stock Exchange in 2021 will be used as the study population. The sampling method uses purposive and a sample of 92 companies. The result exhibits the variables of financial stability, external pressure, competence, and arrogance are having a significant effect upon the fraudulent financial reporting. Financial targets, opportunities, and rationalization have a non-significant effect upon the fraudulent financial statement. Good corporate governance does not moderate the relationship between financial targets, opportunities, rationalization, competence, arrogance, and fraudulent financial reporting variables. Good corporate governance moderates the relationship between financial stability, external pressure, and fraudulent financial reporting variables. The outcome from this research can be a recommendation for companies to reduce fraud through implementation strategies and improve the implementation of good corporate governance so that companies can create value and continue to improve their performance.

Kecurangan Laporan Keuangan Dalam Perspektif Fraud Hexagon

Purpose: Financial statement fraud is a fraudulent act that causes the largest average loss of Rp11.01 billion per case (ACFE Indonesia, 2020). The purpose of this study is to investigate the effect of financial target, financial stability, external pressure, changes in directors, the number of CEO photos and government projects on financial statement fraud. Effective monitoring and external audit quality are the moderating variables in this research. The moderating variable is used to determine whether it can weaken the influence of independent variables on dependent variables. Methodology/approach: This study use 110 secondary data from transportation and logistics companies listed on the Indonesia Stock Exchange for the period 2017-2021. The method used is moderating regression analysis. This research use SPSS 26 as data processing tools. Findings: The results show that financial target have a significant effect on financial statement fraud. The study also indicate that effective monitoring and external audit quality as moderating variables play important roles in decreasing the influence of independent variables on financial statement fraud. Practical and Theoretical Contribution/Originality: This research contributes by using effective monitoring and external audit quality as moderating variable, thereby providing a broader insight. Research Limitation: The limitation of this research is the use of a relatively small sample size, which makes the result of this study can not be generalized.