Fachrurrozie, FE Akuntansi and Agus Wahyudin, - and Ahmad Nurkhin, - and Hasan Mukhibad, - and Kardiyem, - and Fadhilah Mahanani Saputri, - (2020) The Determinant Of The Financial Fraud Of The Village Fund Management. Jurnal Keuangan dan Perbankan, 24 (1). pp. 95-105. ISSN 1410-8089

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Abstract

We examine the relationship between compensation, morality, organizational ethi�cal culture, and financial fraud. The respondents were fifty-two village officials in Weru Subdistrict, Central Java Sukoharjo District who were directly responsible for managing village funds. They were selected using a purposive sampling method. Data was collected by means of the questionnaire was distributed and then, the data were analyzed using Path analysis with WarpPLS software. We found that morality had a positive and significant effect on compensation and organizational ethical culture, as well as a negative and significant effect on financial fraud. Organizational ethical culture proved to have a negative and significant effect on financial fraud. Compensation does not have a significant effect on the ethical culture of the organi�zation and financial fraud. The other result shows that the organizational ethical culture had proven to be a mediator of the relationship between morality and finan�cial fraud. Meanwhile, there is no proven significant relationship between the suit�ability of compensation for financial fraud through the ethical culture of the organi�zation. Also, the study confirmed that the morality and ethical culture of the organi�zation are factors that can reduce the occurrence of financial fraud. Hence, the village government is expected to have better organizational morality and ethical culture.

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