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The purpose of this study is to test whether financial targets, ineffective monitoring, change in auditor, change in director, frequent number of CEO's pictures affect fraudulent financial statements and their impact on investment decisions in all non-financial companies listed on the Indonesia Stock Exchange (IDX) and sanctioned by OJK for violating regulation No. VIII.G.7 from 2010 to 2021. The data used in this study are secondary data derived from financial reports published by the company. A total of 54 companies became the population in the study. The sample selection in this study used a purposive sampling technique with certain criteria and 9 companies were selected as research samples. The data analysis technique in this study is using panel data regression with the help of Eviews software version 12. The results of this study indicate that, simultaneously, financial target, ineffective monitoring, change in auditor, change in director and frequent number of CEO's picture have no effect on fraudulent financial statements. Furthermore, fraudulent financial statements have no effect on investment decisions. Partially financial targets, change in director, and frequent number of CEO's picture have no significant effect on fraudulent financial statements. Meanwhile, change in auditor and ineffective monitoring have a negative and significant effect on fraudulent financial statements.
Riany et al. (Tue,) studied this question.