DETEKSI FRAUDULENT FINANCIAL REPORTING MENGGUNAKAN FRAUD HEXAGON THEORY (STUDI EMPIRIS PADA SEKTOR PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2017-2021)

This study aims to empirically analyze the effect of pressure, capability, collusion, opportunity, rationalization, and arrogance on fraudulent financial reporting. The sample is 110 annual reports of banking sector companies listed on the Indonesia Stock Exchange (IDX) in 2017-2021, selected by purposive sampling technique. Data analysis using panel data regression with the Random Effect Model (REM) using the Stata 15 application. The results show that financial stability as a proxy for the pressure variable significantly negatively affects fraudulent financial reporting. Change of directors as a proxy for the capability variable significantly positively affects fraudulent financial reporting. Meanwhile, audit fees as a proxy for the collusion variable, external auditor quality as a proxy for the opportunity variable, change of external auditors as a proxy for the rationalization variable, and the number of CEO photos as a proxy for the arrogance variable do not significantly affect fraudulent financial reporting.