This research is aimed to discover the economic determinant of fraudulent
financial reporting and the impact to tendency of bankruptcy. There are two
research model tested. First is that leverage, profitability, asset composition,
liquidity, and activity effect to fraudulent financial reporting. Second is that
fraudulent financial reporting effect to the tendency of bankruptcy.
Data that used in this research is secondary data from Indonesia
Stock Exchange and . A sampel of this research is several manufacturing
companies listed on the Indonesia Stock Exchange (IDX) for the period of
2008 to 2011. This analysis is used logistic regression method for first model
and simple linier regression method for second model.
The results showed that no relation is found between profitability and
fraudulent financial reporting while asset composition positive affected to the
fraudulent financial reporting, leverage, liquidity, and activity negative
affected to the fraudulent financial reporting, and fraudulent financial
reporting positive affected to the tendency of bankruptcy. |