THE ROLE OF CORPORATE GOVERNANCE IN FINANCIAL TARGETS AND EXTERNAL PRESSURE
Ana Mardiana (a*), Muhammad Ali (b),Harryanto (b), Yohanis Rura (b)

a. Atma Jaya Makassar University
*ana.mardiana1902[at]gmail.com
b. Hasanuddin University

Abstract

This study aims to examine and analyze the effects of financial targets and external pressure on financial statement fraud with Corporate Governance as a moderating variable. Fraud triangle is the main thing that causes the company to do Fraud. This research establishes good corporate governance in order to minimize and prevent financial statement fraud. Fraud indicates a lack of control by company management.
The study population is all manufacturing companies listed on the Indonesia Stock Exchange. The sample was chosen using purposive random sampling method. The number of samples produced by this method is 145 companies that have a full report for 2011-2015. Data were analyzed using multiple regression.
The results show financial targets effect on financial statement fraud. External Pressure affect the financial statement fraud. Corporate Governance functions as a moderating variable between financial targets and financial statement fraud. Corporate Governance functions as a moderating variable between external pressure and financial statement fraud

Keywords: financial statement fraud, corporate governance, external pressure, financial targets

Topic: Socio-economic issues