Factors Of Fraud Triangle And Its Impact On The Possibility Of Financial Statement Fraud: Evidence From Vietnamese Listed Companies

Abstract

With the advancement of the current financial market, financial statements have become a popular source of extremely important legal information that indicates an enterprise's financial and business performance, allowing the public and investors to consider making the right and effective investment decisions. However, as the current financial market develops, financial statements have become a popular source for providing extremely important legal information that indicates an enterprise's financial and business performance, allowing the public and investors to consider making the right and effective investment decisions. Many investors and interested parties have questioned the honesty and openness of information in financial statements as a result of the typical case of fraud in financial statements. In short, a high profit and loss differential has a significant impact on investors' investing decisions. False and unequal information results in poor investment decisions, bringing significant harm to financial statement consumers. As a result, the study's goal is to use Cresseys' (1953) fraudulent triangle theory to investigate the factors influencing the ability of listed companies on the Vietnamese stock exchange to defraud financial statements, in order to assist auditors and auditing firms in detecting and predicting fraudulent financial statements. For parties such as audit firms, state management agencies, and corporate governance, provide solutions to detect and forecast fraudulent conduct in financial statements of companies listed on the Vietnamese stock exchange. VietStock provides data from companies registered on the Vietnamese stock exchange from 2010 through 2020. The quantitative method is used in this investigation. To evaluate independent variables, the issue employs a Binary Logistic model combined with the Robust option, as well as a fixed industry and year, a multicollinearity test, and regression analysis using Stata 14 software. Determine whether there is an effect on fraudulent financial statements of publicly traded corporations and utilize regression models to determine the impact of various factors. As a result, the study found that the majority of the variables in the Pressure factors group, such as financial pressure, third-party pressure, and managerial motivation, have statistical significance, indicating that these factors are related to thevii fraud triangle, which affects the fraudulent behavior of financial statements of listed companies on the Vietnamese stock exchange. The author gives the results for the Robust-controlled model and the model without Robust under the conservative assumption of variable variance.