Abstract:
Corporate governance exists with the aim of minimizing or eliminating fraud that might occur in the company. This study aims to determine whether the existence of corporate governance has an influence in minimizing and eliminating financial statement fraud in pharmaceutical companies with firm size control variables listed on the Indonesia Stock Exchange in 2012 - 2018. The population of this study is 10 pharmaceutical companies and uses purposive sampling method. The number of samples obtained is 9 companies, so that it can be 63 units of analysis of the total research for 7 years. This study analyzes data using descriptive statistics and logistic regression. The results of the analysis show 2 of 4 corporate governance namely, Managerial Ownership and number of audit committee meetings which have a negative influence on the prevention of corporate fraud while the size of board independence commissioner and quality of external auditors have no influence on fraud that occurs in the company.
