Do fraud hexagon components promote fraud in indonesia?

This study provides information about the likelihood of the nature of fraud companies so that investors and stakeholders can make better decisions. The Beneish model and the fraud theory are two well-developed ideas for understanding fraud motivations and detecting earnings manipulation in a corporation. Unlike previous studies using the fraud triangle, this study uses the latest theory (the fraud hexagon) perspective to detect fraud actions. Thus, this study aims to examine the applicability of the fraud hexagon components in combination with the M-score from the Beneish model. Seventy-six manufacturing firms listed on Indonesia Stock Exchange from 2015 to 2019 were chosen as samples. The findings confirmed that enterprises with fraud tend to: be more financially stable, be more leveraged, have higher profitability, have cooperation projects with the government, have more related-party transactions, have more auditor changes, be less liquid, less changing directors, be less supervised, and less display CEO.?s picture