Applying the Best-Worst Method in Ranking the Factors Affecting the Occurrence of Fraud in Financial Statements Based on the Fraud Hexagon Theory

Articles in Press

Document Type : Original Article

Authors

1 Assistant Professor, Department of Accounting, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran

2 Ph.D. Student, Department of Accounting, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran

10.22108/far.2026.148347.2209

Abstract

Financial statements are the most important source of information for making appropriate economic decisions. therefore, the presence of fraud in such reports with the intention of influencing the decision-making processes of stakeholders and inducing a favorable financial situation is considered a serious threat to the growth and prosperity of the economy. In this regard, identifying the factors affecting the occurrence of fraud in financial statements can restore stakeholders' trust in the capital market and lead to economic development and improved social welfare. The main goal of the present study is to provide empirical evidence of the effectiveness of the fraud hexagon theory in identifying fraudulent financial statements using information from 117 companies listed on the Tehran Stock Exchange during the years 2016 to 2025 using the F-Score fraud measurement model using the structural equation model and the best-worst method for weighting and ranking the elements of the fraud hexagon. The findings from the study of 37 variables in the form of six hypotheses based on the fraud hexagon theory showed that the elements of pressure, opportunity, rationalization, ability, and arrogance have a significant effect on the occurrence of fraud in financial statements, and the pressure element is considered the most important factor in the occurrence of fraud in financial statements. The results of the present study, in addition to expanding the theoretical foundations of the field of fraud, can provide useful information to investors, analysts, suppliers, and managers to make appropriate economic decisions.

Keywords

Main Subjects

Financial Accounting Research

Articles in Press, Accepted Manuscript
Available Online from 20 July 2026

Files

History

  • Receive Date: 13 February 2026
  • Revise Date: 24 May 2026
  • Accept Date: 20 July 2026

Share

How to cite

Statistics