The Effectiveness of Social Media and Press Release Transparency to Detect Indications of Financial Fraud

Journal of Applied Economic and Sciences,Volume 13 (6), p. 1507-1518, 2018

Posted: 21 Apr 2020

See all articles by Danik Astutik

Danik Astutik

Airlangga University

Iman Harymawan

Universitas Airlangga

Mohammad Nasih

affiliation not provided to SSRN

Date Written: September 30, 2018

Abstract

The purpose of this study is to investigate whether the transparency of social media and press releases can detect the financial fraud. This study uses 723 observational samples from 369 companies listed on the Indonesia Stock Exchange from 2015 to 2016. This study shows that social media transparency has negative and significant effects on the indication of financial fraud. However, there is no significant association between press release coverage and an indication of financial fraud. For investors, the results of this study indicate that social media transparency is one determinant that can be used to detect the indications of fraudulent acts on financial statements by the firms.

Keywords: financial fraud, social media, press release, media coverage

JEL Classification: G39, L82, M10

Suggested Citation

Astutik, Danik and Harymawan, Iman and Nasih, Mohammad, The Effectiveness of Social Media and Press Release Transparency to Detect Indications of Financial Fraud (September 30, 2018). Journal of Applied Economic and Sciences,Volume 13 (6), p. 1507-1518, 2018, Available at SSRN: https://ssrn.com/abstract=3561534

Danik Astutik

Airlangga University ( email )

Jl. Darmawangsa Dalam 2
Surabaya, 60286
Indonesia

Iman Harymawan (Contact Author)

Universitas Airlangga ( email )

JL. Airlangga no 4
Surabaya, East Java 60286
Indonesia

HOME PAGE: http://www.feb.unair.ac.id

Mohammad Nasih

affiliation not provided to SSRN

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