Abstract:
The aim of this study is to obtain empirically evidence about the effect of
fraud triangle elements to the financial statement fraud. In this research, pressure
is formed by the four dimension which is financial stability, external pressure,
personal financial need, dan financial targets. While the opportunity formed by
three dimention that is nature of industry, ineffective monitoring, dan
organizational structure and then rationalization. While financial statement fraud
formed by proxy Beneish M-score. Population in this research are property, real
estate, and building construction companies listed on the Indonesian Stock
Exchange period 2013-2017, in total 49 companies for five years and then total
245 companies. Samples were selected using purposive sampling. The data used
in this study was analyzed using Structural Equation Model (SEM) with a model
approach Partial Least Square (PLS). PLS analysis performed using software
SmartPLS 3.0. The test results in this study obtain empirical evidence that the
pressure and opportunity don’t effect on financial statement fraud. Whereas,
rationalization significantly positive effect on the financial statement fraud.
