Determinant Financial Statement Fraud: Perspective Theory of Fraud Diamond (Study Empiris pada Perusahaan Sektor Perbankan di Indonesia Tahun 2011-2015)

This study aimed to examine the elements of fraud in fraud diamond theory against indications of financial statement fraud of banking sector in Indonesia at 2011-2015. Fraud diamond model is a further development of classical fraud triangle theory. It include financial targets, financial stability, institutional ownership, external pressure, nature of industry, external auditor quality, changes in auditors, and direction switch. The indication of financial statement fraud that proxied by discretionary accruals serve as dependent variable. Sample were selected using purposive sampling method from 30 listed companies in Indonesia Stock Exchange in the banking sector during year period 2011-2015, resulted in 150 firm-observation. Data analysis was conducted using the multilinear regression method. The results of this study show that: (1) financial targets, financial stability, external auditor quality, and nature of industry had positive influence to the occurence of financial statement fraud; (2) external pressure had negative influence to the occurence of financial statement fraud; (3) then institutional ownership, change in auditor, and direction switch had no influence to the occurence of financial statement fraud.Keywords: financial statement fraud, fraud diamond, discretionary accruals