An examination of the factors influencing fraud tendencies in village governance in Indonesia

Kiky Puji Lestari; Wahyu Manuhara Putra

doi:10.18196/jai.v26i1.22689

Authors

Kiky Puji Lestari Master of Accounting, Directorate of Postgraduate Program, Universitas Muhammadiyah Yogyakarta, Special Region of Yogyakarta, Indonesia https://orcid.org/0009-0009-0490-8394
Wahyu Manuhara Putra Master of Accounting, Directorate of Postgraduate Program, Universitas Muhammadiyah Yogyakarta, Special Region of Yogyakarta, Indonesia

DOI:

https://doi.org/10.18196/jai.v26i1.22689

Keywords:

Fraud Hexagon Theory, Morality, Tendency Fraud, Village Fund, Village Government

Abstract

Research aims: This study aims to analyze the effect of individual morality on accountability, responsibility, and transparency, and how these three variables affect the tendency of fraud in village government management.
Design/Methodology/Approach: This study uses a quantitative approach involving 343 village apparatus respondents, namely the Village Head, Village Secretary, Head of Affairs, and Section Heads who have less than 5 years of service from 64 villages through purposive sampling technique. Data were collected using a Likert scale-based questionnaire and analyzed using the Partial Least Square (PLS) approach.
Research findings: The results showed that individual morality has a positive effect on accountability, rationalization, and transparency. Responsibility has a negative effect on the tendency to fraud, while accountability does not affect the tendency to fraud.
Theoretical Contribution/Originality: This study makes a theoretical contribution by uncovering the complex relationship between the variables of Accountability, Fraudulent Propensity, Morality, Responsiveness, and Transparency in the context of village government and highlighting the importance of individual morality in preventing fraud.
Practitioner/Policy implication: The practical implication is to provide a basis for better policies at the village level, especially in the ethical and accountable management of village funds.
Research limitation/Implication: This study uses the new Fraud Hexagon model, so comparative references are still very limited. Using the survey method of distributing questionnaires as the primary data collection technique has the potential for respondent bias and limited generalization of results because it focuses on specific areas.

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