The Role of Hexagonal Fraud Model Analysis in Enhancing the Efficiency of Predicting Fraudulent Financial Reports

Abstract

This research aims to analyze the dynamics of the six-dimensional fraud model and demonstrate its role in enhancing the efficiency of fraudulent financial reporting prediction models. This was achieved through an applied study on a sample of companies listed on the Iraq Stock Exchange. The study employed an analytical approach combining behavioral and quantitative dimensions. The six dimensions of the model (pressure, opportunity, ability, rationalization, arrogance, and collusion) were transformed into measurable variables, and their impact was tested using a logistic regression model. The results showed a significant impact of all model dimensions in explaining the probability of financial fraud, with collusion, managerial arrogance, and financial pressure emerging as the most influential factors. The study concluded that integrating behavioral and organizational factors with financial analysis contributes to improving the efficiency of predictive models and provides a more comprehensive framework for understanding fraudulent behavior in the business environment.