The Effect of Leverage on Fraudulent Financial Statements in Consumer Goods Industry Companies in the Food Sub-Sector and Drinks Listed on the IDX

Abstract

Fraud is an action taken to manipulate the contents of financial statements with the aim of obtaining company profits. Fraud in financial statements has an impact on reducing the level of trust of investors and the public and can harm interested parties such as creditors, investors, employees and the government.This study aims to determine the effect of leverage on fraudulent financial statements. This type of research is quantitative. The population and research sample are all food and beverage companies listed on the Indonesia Stock Exchange (IDX). The sample was determined based on a purposive sampling technique of 26 companies. The data analysis method used is the classical assumption test, and simple linear regression analysis using SPSS as an analytical tool. The results of this study state that leverage has a positive and significant effect on fraudulent financial statements.