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The stages used in Logistic regression are the feasibility test of the regression model, Overall model fit, Assessing the coefficient of determinant, Table Matrix of Clarification and Logistic regression coefficient test, Wald test and G Test.
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3. H3: Rationalization (ACCRUAL) in the category of total accrual ratio affects the Financial Statement of Fraud
Free rationalization variable (ACCRUAL) shows a significant value of 0.078 meaning the same as α
= 0.05 so that H3 can be accepted and in this study proves that the Rationalization in the total accrual ratio category significantly influences Fraud's Financial Statement.
4. H4: Competence (CEOCHANGE) in the change in category CEO influences Fraud's Financial Statement
The independent variable competence (CEOCHANGE) refers to a significance value of 0.146, which means that it is greater than α = 0.05 so that H4 is rejected and in this study proves that Competence in the change in CEO category does not have a significant influence on fraudulent Financial Statement
5. H5: Arrogance (CEOCP) in the Dualism position of CEO category affects Fraud's Financial Statement
Arrogance free variable (CEOCP) shows a significance value of 0.642 which means that it is greater than α = 0.05 so that H5 is rejected and in this study shows that Arrogance in the dualism position of CEO category does not have a significant influence on Fraud's Financial Statement.
Table 3. G Test Sig.
Step 1 Step 0,043 Block 0,043 Model 0,043
Based on table 4.11 it is known that the significance level of mdel is 0.043, meaning that it is smaller than α = 0.05 so that H0 cannot be rejected or can be said to be accepted, then the independent variable model is worth explaining the dependent variable.
Based on the results of data analysis that has been done, it can be further elaborated as follows:
4.1 Effect of Pressure (ACHANGE) on Financial Statement Fraud (DAit)
Based on the test of the logistic regression coefficient which can be seen in table 4.8, it shows that the independent variable ACHANGE has a positive direction of 0.71 and a probability of 73.65%. While based on the Wald test shows a significance level of 0.1028 which is> α = 0.05 so that it does not significantly influence and cannot detect the occurrence of dependent variable financial statement fraud (DAit) in mining sector companies listed on the Indonesia Stock Exchange (BEI) period 2012 to 2018.
This happens because the management of the company does not feel the need to manipulate the growth of company assets because in the business world the rise and fall of asset values is a natural thing so that company management is not under pressure to commit fraud so that the company's financial position is in a position that stable which can be seen from good total asset growth. This study proves that company management prefers to address the company's financial stability in accordance with existing conditions without having to manipulate its financial statements.
Previous research conducted by Faradiza [4], Bawakes [3], Siddiq et al [7], Aprilla [1] and Zelin [13] have different results in research they stated that pressure in the financial stability category seen from the growth of total assets for 2 years (ACHANGE) had a significant effect on the financial statement of fraud, this happened because the object of research was different so that the results were also different. The companies used in the previous research did get pressure to maintain financial stability then commit fraud, but this study that took objects to mining sector companies showed the opposite results.
4.2 Influence of Opportunity (RECEIVABLE) on Financial Statement (DAit)
Based on the test of the logistic regression coefficient which can be seen in table 4.8, it shows that the RECEIVABLE independent variable has a positive direction of 0.393 and a probability of 67.06%.
Whereas based on the wald test shows a significance level of 0.374 which> α = 0.05 so that it does not significantly influence and cannot detect the occurrence of dependent variable financial statement fraud
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(DAit) in mining sector companies listed on the Indonesia Stock Exchange (BEI) for the year 2012 to 2018.
This happened because the company management did not manipulate the total receivables received, because the company has an industrial nature that does have a small uncollectible risk because the company implements risk management to minimize the risk of uncollectible receivables which can reduce company revenue. This research proves that the opportunity to cheat by raising the value of accounts receivable so that it has an impact on large profits is not done because it is not the nature of the industry of the company which is the object of this research that has implemented risk management so as to minimize the occurrence of uncollectible accounts. This is supported by research conducted by Zellin [13] which in the study stated that Oppurtunity in the nature of industry category did not significantly influence financial statement fraud seen from earnings management.
4.3 Effect of Rationalization (ACCRUAL) on Financial Statement Financial (DAit)
Based on the test of the logistic regression coefficient which can be seen in table 4.8, it shows that the independent variable CEA has a positive direction which is 0.814 and the probability is 75.62%.
While based on Wald test shows a significance level of 0.078 which> α = 0.05 so that it does not significantly influence and can not detect the occurrence of dependent variable financial statement fraud (DAit) in mining sector companies listed on the Indonesia Stock Exchange (IDX) year period 2012 to 2018.
This is because the value of total accruals is not the result of manipulation by the management of the company to justify the management of profits made but rather the actual condition of the company.
This research proves that the Rationalization in the category of total accrual ratio does not significantly influence financial statement fraud seen from earnings management. This is supported by research conducted by Faradiza [4] which in the study also states that the Rationalization in the category of total accrual ratio does not significantly influence financial statement fraud seen from earnings management.
4.4 The Effect of Competence (CEOCHANGE) on Financial Statement (DAit)
Based on the test of the logistic regression coefficient which can be seen in table 4.8, it shows that the CEOCHANGE independent variable has a negative direction which is -0,391 and a probability of 48.17%. Whereas based on the wald test shows a significance level of 0.384 which> α = 0.05 so that it does not significantly influence and cannot detect the occurrence of dependent variable financial statement fraud (DAit) in mining sector companies listed on the Indonesia Stock Exchange (BEI) for the year 2012 to 2018.
This can happen because the replacement of a president director or director is not solely because of improvements in the performance of the company's directors but is a natural thing because each member of the board of directors can resign or his term of office has ended so that changes are made and do not indicate performance improvement of a company director. This is supported by the Zellin study [13], Siddiq et al [7], and Bawakes [3] which in the study also stated that Competence in the change in CEO category did not significantly influence financial statement fraud seen from earnings management.
4.5 Arrogance Effect (CEOCP) on Financial Statement (DAit)
Based on the test of the logistic regression coefficient which can be seen in table 4.8, it shows that the independent variable CEOCP has a negative direction which is -0.663 and a probability of 41.45%.
While based on the Wald test shows a significance level of 0.146 which is> α = 0.05 so that it does not significantly influence and cannot detect the occurrence of the dependent variable financial statement fraud (DAit) in mining sector companies listed on the Indonesia Stock Exchange (IDX) for the year 2012 to 2018.
This can happen because of the government or institution that has the authority to do so that requires every company that goes public to implement Good Corporate Governance (GCG) so that even though a CEO is arrogant in nature who wants a lot of positions not to cheat by manipulating company financial statements. This study proves that Arrogance in the dualism category of CEO position does not significantly influence financial statement fraud seen from earnings management. This is supported by the research of Zelin [13] which in his research stated that arrogance in the dualism category of CEO position did not significantly influence financial statement fraud seen from earnings management.