Fraudulent Financial Reporting

Fraudulent financial reporting has been one of the most sensitive issues on the business world. Financial statements that conceal the company's facts have caused great losses to its stakeholders. The ranking of companies based on fraudulent financial reporting is one of the key issues for performance analysis. This study, by using financial variables and the data envelopment analysis methodology, ranked the pharmaceutical companies listed on the Tehran Stock Exchange in terms of fraudulent financial reporting. The data and theoretical framework of the research are based on library studies and data analysis has been done based on the data envelopment analysis model. The results of this study indicate that the most manipulation of profits in 2015 was in the Daru Amin and Faravordehaye Tazrighi companies, as well as Iran Daru and Sina Daru in 2016. This will lead to the companies being ranked at the highest level of fraudulent financial reporting.

This study aims to analyze fraudulent financial reporting based on the Fraud Hexagon theory in companies listed on the Tehran Stock Exchange. The population in this research included all the companies listed on the Tehran Stock Exchange. The samples in this research were determined using the purposive sampling method, and the selection of samples was based on the criteria determined according to the objectives of the research. The reason for using this technique was to make it easier to collect data according to the research needs. This research was conducted on the companies listed on the Tehran Stock Exchange in 2014-2023, with a statistical population of 141 companies. Finally, 1410 companies were collected for this research. The dependent variable in this research was measured using dummy variables, and logistic regression analysis was used to test the hypotheses. The results of the research indicated that the factors of collusion, CEOs' narcissism, and motivation have a significant relationship with fraudulent financial reporting. However, auditor change, CEO change, and the industry's nature do not positively affect fraudulent reporting.