Abstract :

This study aims to examine the effectiveness of good corporate governance as proxied by the independent board, audit committee, managerial ownership, and institutional ownership in reducing the risk of fraudulent financial reporting in banking companies listed on the Indonesia Stock Exchange from 2020 to 2024. The analysis was conducted on 39 companies that met the research criteria, resulting in a total of 195 samples. Hypothesis testing was performed using multiple linear regression analysis with the assistance of the Eviews 12 software. The results indicate that the independent board has a negative and significant effect on the risk of fraudulent financial reporting, while managerial ownership has a positive and significant effect. In contrast, the audit committee and institutional ownership do not have a significant effect. Furthermore, the F-test shows that the independent variables simultaneously have a significant effect on the dependent variable. Based on the coefficient of determination (R²), 36.43% of the variation in the dependent variables can be explained by the independent variables.

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Keywords :

audit committee, Fraudulent Financial Reporting, Independent Board, Institutional Ownership, Managerial Ownership.

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