THE MEDIATING IMPACT OF EARNINGS MANAGEMENT ON THE EFFECT OF TOURNAMENT INCENTIVES AND MANAGEMENT OVERCONFIDENCE ON FRAUD IN FINANCIAL STATEMENTS

Abstract

This study aims to analyze the effect of tournament incentives and management overconfidence on fraud in financial statements. Then, this study also analyzes the indirect effect of tournament incentives and management overconfidence on fraud in financial statements mediated by earnings management. The samples used in this study are primary consumer goods sector companies listed on the Indonesia Stock Exchange (IDX) and publish financial reports in the period 2018 - 2022. The results of this study reveal that the tournament incentives variable has no effect on earnings management, management overconfidence has a positive effect on earnings management, tournament incentives has no effect on fraud, management overconfidence has no effect on fraud, earnings management has a positive effect on fraud, earning management does not mediate the effect of tournament incentives on fraud in financial statements, and earning management mediates the effect of management overconfidence on fraud in financial statements.