Font Size: 

This study aimed to obtain empirical evidence about the influence of pressure, opportunity, rationalization, capability, and arrogance (the elements of fraud pentagon) on the occurrence of financial statement fraud. Fraud pentagon is the development of fraud triangle. Fraud pentagon was developed by Marks (2009) which adds two new elements, consist: arrogance and competence. Financial statement fraud is deliberate act that cause misstatement or omission of material information in company’s financial statement. The scope of this study is the study conducted on public companies listed in Indonesia Stock Exchange, except companies that included in financial sector during period 2007-2015. Type of analysis of this study is quantitative analysis. The research method used in this study is multiple linear regression using pooled data. The population of this study is public company listed on Indonesia Stock Exchange during 2007-2015. Sample of this study consisted of 150 public companies. The result of this study prove that pressure, rationalization, and arrogance have positive effect and significant on the financial statement fraud. Opportunity and capability do not have significant effect on the financial statement fraud.

fraud pentagon; fraud triangle; capability; arrogance; financial statement fraud.