| Category |
Proxy |
Measurement |
Reference |
| Financial Statement Fraud (Y) |
| FSF |
FSF |
FSF = Firms selected as the fraud firms and non-fraud firmsWhere:1 = The fraud firm0 = The non-fraud firm |
Astuti et al. (2015), Beasley (1996), Zainudin and Hashim (2016), Ines (2017), Lokanan and Sharma (2018), Nasir et al. (2018), Omar et al. (2017), Pamungkas et al. (2018), Perols and Lougee (2011) Skousen and Wright (2011), Wei et al. (2017), Yusof et al. (2015) |
| Pressure/Stimulus |
| Financial stability |
Assets change (X1) |
A CHANGE = (Total assets t - Total assets t-1)/ Total Assets t-1 |
Avortri and Agbanyo (2020), Lokanan and Sharma (2018), Omukaga (2021), Ozcelik (2020), Skousen et al. (2009) |
| Opportunity |
| Nature of industry |
Receivable (X2) |
REC =Receivable t/Sales t – Receivable t-1/ Salest-1 |
Avortri and Agbanyo (2020), Lokanan and Sharma (2018), Omukaga (2021), Skousen et al. (2009) |
| Rationalization |
| Rationalization |
Audit Report (X3) |
AUDREPORT = A dummy variable for an audit opinionWhere:1 = Auditors give an unqualified opinion 0 = Otherwise |
Lokanan and Sharma (2018), Skousen et al. (2009) |
| Capability |
| Capability |
Independent Board of Commissionaire Independent (X4) |
INDBOC = % of Independent Board of Commissionaire |
Indarto and Ghozali (2016), Sari et al. (2020), Wijayani and Ratmono (2020) |
| Arrogance/Ego |
| Arrogance |
BOD Picture (X5) |
BODPIC = How frequently BOD’s picture appears in the annual report |
Pamungkas et al. (2018), Rukmana (2018), Yusof et al. (2015) |
