Fraud Disclosure: Determinants and Implication

Arum, Enggar Diah Puspa and Wisdianti, Diza Armalia (2020) Fraud Disclosure: Determinants and Implication. Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, 1. pp. 1001-1005. ISSN 978-989-758-432-9

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Abstract

The purpose of this research is to analyze factors affecting fraud disclosure and its implication on market reaction. Audit committee, internal audit, managerial ownership, and internal control play important role to reach good governance that can reduce fraud. Whistleblowing system is a part of internal control and expected to strengthen good governance. Minimizing the possibility of fraud is expected to improve the company's reputation as reflected in market reactions. This research was analyzed by using path analysis. Target population is banking industries listed on the Indonesia Stock Exchange. Results showed that audit committee, internal audit, and managerial ownership have a positive effect on whistleblowing system. Internal audit and whistleblowing system have a negative effect on fraud disclosure. Audit committee and whistleblowing system have a positive effect on market reaction, and fraud disclosure has a negative effect on market reaction. This research provides empirical evidence that the better the governance structure the better the whistleblowing system. The better implementation of the whistleblowing system, the less disclosure of fraud. Furthermore, the less fraud disclosure the better the market reaction.

Type:	Article
Subjects:	H Social Sciences > HG Finance
Divisions:	Fakultas Ekonomi dan Bisnis > SI Akuntansi
Depositing User:	Arum
Date Deposited:	24 Mar 2021 07:30
Last Modified:	24 Mar 2021 07:30
URI:	https://repository.unja.ac.id/id/eprint/16317

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