New Fraud Diamond Model and Financial Statement Fraud Detection: Evidence from Indonesia’s Non-Financial SOEs (2018–2022)

This study examines the influence of each element of the new fraud diamond model on fraudulent financial statements in non-financial state-owned companies listed on the Indonesia Stock Exchange (IDX). The study population consisted of all non-financial state-owned companies listed on the Indonesia Stock Exchange (IDX) in the 2018-2022 period. Purposive sampling was used to select the samples. The total sample of this study comprises financial reports from 90 companies. Logistic regression analysis was used for hypothesis testing. The results of this study indicate that the nature of the industry and history of sales have a proven positive effect on financial statement fraud. However, other variables, namely, financial stability, external pressure, personal financial needs, external pressure, financial targets, effective monitoring, earnings growth, and change in directors, have no proven effect on financial statement fraud.