Determinants of Financial Statement Fraud Based on the Fraud Hexagon Model: The Moderating Role of Media Exposure

Financial statement fraud is a persistent issue in corporate governance. This study aims to examine the influence of fraud hexagon elements on financial statement fraud, with media exposure as a moderating variable. The elements include pressure (ROA), opportunity (ineffective monitoring), rationalization (auditor change), capability (director change), arrogance (executive arrogance), and collusion (board duality). Using secondary data from 102 manufacturing companies listed on the Indonesia Stock Exchange during 2018–2022 (510 firm-year observations), logistic regression was applied. The results show that ineffective monitoring and auditor change significantly increase the risk of fraud, while other variables show no significant effect. Media exposure significantly moderates only the relationship between ROA and fraud. These findings highlight weaknesses in internal oversight and the limited role of media as an external monitor. The study supports agency theory and emphasizes the need to strengthen the roles of independent commissioners, auditors, and media in improving corporate transparency.