Fraud hexagon theory

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.