Hu Model Optimization to Detect Fraud in Financial Reports That Affect Green Value With Litigation Risk in Asean

Fraud in financial reporting is a serious issue that undermines investor trust and reduces a firm's market value, particularly in the mining sector with its high risks and complex supervision. This study examines factors influencing financial reporting fraud and its impact on mining companies in Indonesia and Malaysia. The population consists of all mining firms listed on the Indonesia Stock Exchange (IDX) and Bursa Malaysia from 2018 to 2023. Data were collected through documentation and analyzed using panel data regression with STATA software. The findings show that financial stability (stimulus), industry complexity (opportunity), and auditor change (rationalization) significantly increase the likelihood of fraudulent reporting, while management integrity reduces such practices. However, the proportion of independent commissioners (capability) has no significant effect, and litigation risk does not moderate the relationship between fraud and firm market value, indicating weak enforcement and supervision in both countries. The study contributes to strengthening internal controls, oversight mechanisms, and policy formulation to prevent fraud in the mining industry.