Bambang Leo Handoko
ABSTRACT
This research aims to identify and examine the detection of financial fraud using Beneish M-Score analysis. The analysis consists of eight-fold independent variables: Days Sales in Receivable Index (DSRI), Gross Margin Index (GMI), Asset Quality Index (AQI), Sales Growth Index (SGI), Depreciation Index (DEPI), Selling, General and Administrative Index (SGAI), Leverage Index (LVGI), and Total Accruals to Total Assets (TATA). Secondary data is utilized throughout the data collection process whilst the research sample involves 11 government- state owned enterprise (SOE) that are registered on the Indonesian Stock Exchange (BEI) over the year of 2016-2020. The aforementioned sample is elected by purposive sampling technique. The researchers adopt SPSS 25 to conduct the data processing and multiple linear regression for testing the corresponding hypotheses. The results of this research indicate that Beneish M-Score is not only proven for its effectiveness in fraud detection, but also for its comprehensive assistance in expecting potential fraud inside BUMNs, particularly in regard to financial statements.
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Index Terms
- The Application of Beneish M-Score Method in Detecting Fraudulent Manipulation on Financial Statements (Case Study of Indonesian Government-State Owned Enterprise (SOE) Registered on Indonesian Stock Exchange 2016-2020
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