ABSTRACT

This study analyzes the influence of fraud diamond in detecting financial statement fraud and company value. The purpose of this study was to test and analyze: the influence of pressure factors on financial statement fraud, the influence of opportunity factors on financial report fraud, the influence of rationalization factors on financial statement fraud, the influence of capability factors on financial statement fraud, the influence of financial statements fraud on firm value. The research period is 2012-2016 for manufacturing industries for 66 companies. The data analysis technique uses structural equation modeling (SEM) using panel data which is a combination of time series and cross section data in quantitative research. The research data shows: the pressure has a positive effect on financial statement fraud, the opportunity to have a positive influence on
financial report fraud, rationalization has a positive effect on financial report fraud, capability has no effect on financial report fraud, financial report fraud has a negative effect on firm value.

Keywords: Fraud diamond, Financial Statement Fraud, corporate value