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This study aims to examine the effect of the Fraud Hexagon Theory elements on financial statement fraud in State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange during the 2018–2023 period, with the audit committee serving as a moderating variable. This study employed a quantitative approach using secondary data obtained from companies' annual reports. The sample consisted of 103 firm-year observations selected through purposive sampling. Data were analyzed using the Common Effect Model (CEM) and Moderated Regression Analysis (MRA). The results indicate that ineffective monitoring has a positive effect on financial statement fraud, whereas change in director and political connection have negative effects. Meanwhile, financial stability, auditor change, and frequent number of CEO's picture do not significantly affect financial statement fraud. Furthermore, the audit committee only moderates the relationship between change in director and financial statement fraud but does not moderate the relationships involving the other independent variables. These findings highlight the importance of effective internal monitoring and corporate governance in reducing the risk of financial statement fraud in Indonesian SOEs.
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Andriyani et al. (2026) studied this question.
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