Comparative Analysis of Indications of Financial Statement Fraud Using the Fraud Hexagon Theory in Games Sub-sector Companies in Japan and China for the period 2020-2022
Abstract
Technology sector companies in the era of globalization have great potential to grow and compete in the international market. One of the sub-sectors of technology companies is games sub-sector companies that focus on digital games based on research conducted, Japan and China are 2 developed countries that dominate in the games sub-sector. The games sub-sector company can be said to be a company that has great potential because based on research conducted, companies engaged in this sector have a significant increase in revenue, but even though it has great potential, it does not rule out the possibility that the company is free from misstatements of financial statements either accidentally or intentionally. Therefore, this study was conducted to examine whether there are differences in indications of fraud in the presentation of financial statements in games sub-sector companies in Japan and China using the fraud hexagon model. This study examines companies engaged in the games sub-sector in Japan and China. Based on the criteria and requirements set by the researcher, 13 companies were obtained with a total of 39 samples for each country. The conclusion of this study is that for the Japanese sample, rationalization has a positive effect on indications of fraudulent financial statements. Financial stability and nature of industry are not sufficient evidence of a positive effect on indications of fraudulent financial statements. While CEO's Education, frequent number of CEO's picture, and Collusion have no influence on indications of fraudulent financial statements. While in China frequent number of CEO's picture, and Collusion are proven to have a positive effect on indications of fraudulent financial statements. Financial Stability, nature of industry, rationalization, and CEO's education have no influence on indications of fraudulent financial statements.
Keywords
Games, Fraud Hexagon Theory, Multiple Linear Regression Analysis
Citations
IRE Journals:
Wilxen Sanjaya Putra , Rizka Indri Arfianti
"Comparative Analysis of Indications of Financial Statement Fraud Using the Fraud Hexagon Theory in Games Sub-sector Companies in Japan and China for the period 2020-2022" Iconic Research And Engineering Journals Volume 8 Issue 1 2024 Page 583-592
IEEE:
Wilxen Sanjaya Putra , Rizka Indri Arfianti
"Comparative Analysis of Indications of Financial Statement Fraud Using the Fraud Hexagon Theory in Games Sub-sector Companies in Japan and China for the period 2020-2022" Iconic Research And Engineering Journals, 8(1)
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