The Influence of Financial Stability Against Financial Statement Fraud With External Pressure As Moderation

Abstrak

This study aims to analyze the effect of financial stability on financial statement fraud and examine the moderating role of external pressure in banking sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. The research adopts a quantitative approach using secondary data obtained from annual financial reports. Data analysis was conducted using multiple linear regression and moderation interaction tests to assess both direct and indirect relationships among variables. The results indicate that financial stability has a significant effect on financial statement fraud, suggesting that the more stable a company’s financial condition, the lower the likelihood of management engaging in fraudulent financial reporting. Furthermore, external pressure was found to moderate this relationship by weakening the effect of financial stability on the tendency to commit fraud. This implies that under high external pressure, the effectiveness of internal controls decreases, increasing the potential for fraudulent behavior. This study provides important implications for management and regulators to strengthen financial governance and mitigate excessive external pressures to prevent financial statement fraud.