The Comparison of Two Data Mining Method to Detect Financial Fraud in Indonesia
Journal Title: GATR Accounting and Finance Review - Year 2017, Vol 2, Issue 1
Abstract
Objective - This research is expected to improve the weaknesses in the research conducted by Tarjo and Herawati (2015). The objective of this study was to analyse two data mining methods in detecting financial fraud based on Beneish m-score model. Methodology/Technique - The research data were companies who committed fraud based Database Case Sanctions Issuers and Public Companies which was released by the Financial Services Authority in the period 2001-2014. For comparison, researchers also used data from companies that did not commit fraud. Companies were selected based on the same industry group of companies committing fraud for the purposes of classification. Findings - The results show that data mining methods can be used to detect financial fraud based on Beneish m-score model. However, there are differences in the classification. In the logit regression, the results are only limited to the accuracy of classification and weak. While the K-Nearest Neighbor model, in addition, it is capable of performing high classification accuracy. Novelty - The study indicates a better method for detecting financial fraud.
Authors and Affiliations
Tarjo . , Nurul Herawati
Keywords
Related Articles
- EP ID EP184419
- DOI -
- Views 167
- Downloads 0
Fundamental Effect of Implementation of Corporate Social Responsibility and Value Based Management on the Equity Value of Hotels in Bali
Objective - The purpose of this study was to examine the implementation of the fundamental effects of Corporate Social Responsibility and Value Based Management on the Equity Value of hotels in Bali. Methodology/Techniq...
The Comparison of Two Data Mining Method to Detect Financial Fraud in Indonesia
Objective - This research is expected to improve the weaknesses in the research conducted by Tarjo and Herawati (2015). The objective of this study was to analyse two data mining methods in detecting financial fraud base...
Bankruptcy Prediction: SMEs Case Study in Pontianak, Indonesia
Objective – This study aims to examine the risk of bankruptcy among SMEs to determine whether there are any significant differences in the financial performance between SMEs that apply accounting standard and those that...
Exploring the Relationship between Working Capital Management, Profitability and Capital Structure
Objective - This paper explores the relationship between working capital management (WCM), profitability and capital structure. A preliminary framework provides an understanding of the role of WCM components with capital...
Value Relevance of Firms’ Reportable Segment Profit or Loss Reconciliation
Objective – The International Financial Reporting Standards (IFRS) No.8 adopted in Indonesian GAAP (Statement No. 5, 2012) requires a company to provide a reconciliation of the total of the reportable segments’ profit or...