The importance of presenting financial reports for company development efforts makes company management move to maximize company performance so that it continues to develop. However, many companies deliberately display financial reports that are not in sync with the characteristics of financial reports as they should be to achieve this goal. So this encourages the practice of fraudulent acts, namely in the form of manipulation of financial reports.
This research aims to determine the influence of Financial Stability, Nature of Industry, Change in Auditor, Change in Director, CEO's Picture and Projects with the Government on fraudulent financial reports in pharmaceutical sector companies listed on the Indonesia Stock Exchange (BEI) in 2020-2023.
This type of research is quantitative research with secondary data obtained from the annual financial reports of companies listed on the Indonesia Stock Exchange (BEI) for 2020-2023. The population in this study is all pharmaceutical companies in 2020-2023. The sample in this study consisted of 24 samples originating from 6 samples multiplied by the 4 year research period. The sampling method was carried out using a purposive sampling method by creating certain sample criteria that were able to represent the entire research population.
The research results show that there is a simultaneous influence between Financial Stability, Nature of Industry, Change in Auditor, Change in Director, CEO's Picture and Projects with the Government on financial report fraud. Partially, Financial Stability has a positive effect on Financial Report Fraud, Nature of Industry has a negative effect on Financial Report Fraud, Change in Auditor has no effect on Financial Report Fraud, Change in Director has a negative effect on Financial Report Fraud, CEO's Picture has no effect on Financial Report Fraud and Projects with the Government have a positive effect on financial statement fraud.
Keywords: Financial Report Fraud, Financial Stability, Nature of Industry, Change in Auditor, Change in Director, CEO's Picture, Projects with the Government