FACTORS AFFECTING FINANCIAL STATEMENT FRAUD IN TURKIYE

The aim of this study is to examine the economic and non-economic factors affecting financial statement fraud by using annual data in the period from 2011 to 2023, concerning individuals and legal entities registered with the Capital Markets Board of Türkiye (SPK). The results of the Generalized Linear Model (GLM) indicate that economic factors such as GDP, inflation (INF), government spending (GOV), and income inequality (GINI) all play significant roles in influencing financial statement fraud and the penalties associated with it. Political stability and perception of corruption also have an important impact. These results support several hypotheses related to the effects of economic and social factors on financial statement fraud. Specifically, an increase in national income (GDP) is found to reduce the occurrence of fraud, while exchange rate fluctuations (EXR), income inequality (GINI), and the perception of corruption (CPI) are found to be positively associated with increased fraud cases and penalties.