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THE EFFECT OF FRAUD DIAMOND DIMENSION ON FRAUDULENT FINANCIAL REPORTING IN TEXTILE AND GARMENT SUB SECTOR COMPANIES LISTED IN IDX (2016-2018)

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ABSTRACT THE EFFECT OF FRAUD DIAMOND DIMENSION ON FRAUDULENT FINANCIAL REPORTING IN TEXTILE AND GARMENT SUB SECTOR COMPANIES LISTED IN IDX (2016-2018) Written by: Geraldine Laurie Manuella Simanjuntak NIM: 1632115 This research was conducted with the aim of knowing how the Fraud Diamond Dimensions affects Fraudulent Financial Reporting. This research used the descriptive method with the quantitative approach. The analytical method used in processing statistical data analysis is the coefficient determination, linear regression analysis, and the significance test. This research was conducted on Textile and Garment sub-sector companies listed in Indonesia Stock Exchange for the period 2016-2018, with the research sample of 13 companies in it. The results of this research indicated that Pressure that measured by leverage ratio and Rationalization that projected by the audit opinion have a negative and significant effect on fraudulent financial reporting, while Capability that projected by the change of board of directors has a significant effect towards fraudulent financial reporting. The Opportunity that measured by the inventory ratio does not affect the occurrence of the fraudulent financial reporting. The results of this study can provide knowledge and benefits for further researchers to add the variables or the other proxies that able to influence the occurrence of fraudulent financial reporting. Keywords: Fraud Diamond, Fraudulent Financial Reporting