• ISSN: 2301-3567
    • Frequency: Quarterly (2013-2014); Monthly (Since 2015)
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Chloe Wu
    • Abstracting/ Indexing: Engineering & Technology Library,  Electronic Journals Library, Ulrich's Periodicals Directory, MESLibrary, Google Scholar, Crossref, and ProQuest.
    • E-mail: joebm@ejournal.net
JOEBM 2017 Vol.5(5): 218-222 ISSN: 2301-3567
DOI: 10.18178/joebm.2017.5.5.515

Detection and Prediction of Managerial Fraud in the Financial Performance of Indonesian Banks

Farah Margaretha Leon and Bayu Mahendra
Abstract— Abstract—Focus of this study is to know the influence of ratio financial that used by Federal Deposit Insurance Corporation to possibility of fraud managerial in banks that enrolled in the Indonesian stock exchange and commits iniquity in 2014 that is viewed through the annual report of 2014. This study used regression logistics, three groups of the ratio financial namely performance, growth, and capital tested with data from the financial statement in the period three years before the fraud managerial. The ratio performance and the ratio growth indicate significant influence of its impact of fraud. Extreme ratio performance where it is too high or too low will encourage the possibility of fraud. Rapid growth ratio will also encourage the possibility of fraud cheating. The result of this study, manager, investors, as well as government expected to be more cautious in doing financial analysis ratios. Manager must be able to maintain the stability of financial bank ratios to reduce the risk of fraud. Investors should be more carefully in doing financial analysis ratio to get optimal return in investment. The government should be able to make the regulations to minimize the possibility of fraud.

Index Terms— Index Terms—Detection, prediction, prevention, fraud, financial ratio, performance ratio, growth ratio, capital ratio.

Farah Margaretha and Bayu Mahendra are with the Researcher of Faculty of Economics and Business, Trisakti University, Indonesia (e-mail: farahmargaretha@gmail.com, bayumahendrafitvanto@gmail.com).

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Cite: Farah Margaretha Leon and Bayu Mahendra, " Detection and Prediction of Managerial Fraud in the Financial Performance of Indonesian Banks," Journal of Economics, Business and Management vol. 5, no. 5, pp. 218-222, 2017.

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