Can ESG disclosure and digital accounting mitigate financial statement fraud? Evidence from the Fraud Hexagon perspective
DOI:
https://doi.org/10.30871/jaba.13967Keywords:
Digital Accounting, ESG Disclosure, Financial Statement Fraud, Fraud Hexagon, Green GovernanceAbstract
Financial statement fraud threatens corporate reporting integrity amid increasing demands for ESG transparency and digital transformation. This study examines the effects of Fraud Hexagon dimensions on financial statement fraud and the moderating roles of ESG disclosure and digital accounting. Using secondary panel data from Energy, Basic Materials, and Industrials companies listed on the Indonesia Stock Exchange during 2021–2025, the study applies panel regression and moderation analysis. Financial statement fraud is measured using the Dechow F-Score, while ESG disclosure and digital accounting are measured using disclosure indices. The results show that pressure, opportunity, capability, and collusion significantly increase financial statement fraud, while rationalization and arrogance are insignificant. ESG disclosure significantly weakens the relationship between the Fraud Hexagon and financial statement fraud, as does digital accounting. The findings confirm the relevance of the Fraud Hexagon while demonstrating that sustainability transparency and digital accounting can serve as complementary governance mechanisms for strengthening financial reporting integrity.
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