Religiosity, ethical leadership and local wisdom in moderating the effect of fraud risk management on asset misappropriation: evidence from local government in Indonesia

PurposeThis study aims to examine the effects of religiosity, ethical leadership and local wisdom on the relationship between fraud risk management and asset misappropriation in Indonesia.Design/methodology/approachData were collected using a set of questionnaire surveys administered to the head off...

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Published in:JOURNAL OF ISLAMIC ACCOUNTING AND BUSINESS RESEARCH
Main Authors: Tarjo, Tarjo; Anggono, Alexander; Alim, Mohammad Nizarul; Said, Jamaliah; Mohd-Sanusi, Zuraidah
Format: Article; Early Access
Language:English
Published: EMERALD GROUP PUBLISHING LTD 2024
Subjects:
Online Access:https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001271185500001
author Tarjo
Tarjo; Anggono
Alexander; Alim
Mohammad Nizarul; Said
Jamaliah; Mohd-Sanusi
Zuraidah
spellingShingle Tarjo
Tarjo; Anggono
Alexander; Alim
Mohammad Nizarul; Said
Jamaliah; Mohd-Sanusi
Zuraidah
Religiosity, ethical leadership and local wisdom in moderating the effect of fraud risk management on asset misappropriation: evidence from local government in Indonesia
Business & Economics
author_facet Tarjo
Tarjo; Anggono
Alexander; Alim
Mohammad Nizarul; Said
Jamaliah; Mohd-Sanusi
Zuraidah
author_sort Tarjo
spelling Tarjo, Tarjo; Anggono, Alexander; Alim, Mohammad Nizarul; Said, Jamaliah; Mohd-Sanusi, Zuraidah
Religiosity, ethical leadership and local wisdom in moderating the effect of fraud risk management on asset misappropriation: evidence from local government in Indonesia
JOURNAL OF ISLAMIC ACCOUNTING AND BUSINESS RESEARCH
English
Article; Early Access
PurposeThis study aims to examine the effects of religiosity, ethical leadership and local wisdom on the relationship between fraud risk management and asset misappropriation in Indonesia.Design/methodology/approachData were collected using a set of questionnaire surveys administered to the head office, local government internal auditors (inspectorate) and local government employees in Indonesia. Sample selection used purposive techniques and obtained 151 respondents who became research data. The dependent variable was asset misappropriation. The independent variable was fraud risk management. The moderating variables for this study were religiosity, leader ethics and local wisdom. The analysis technique applied the structural equation model-partial least square (SEM-PLS).FindingsFraud risk management has a significant negative effect on asset misappropriation. In addition, this study finds evidence that religiosity, ethical leadership and local wisdom increase fraud risk management against asset misappropriation.Research limitations/implicationsThis study proposes an integrative model that enables local governments to understand fraud risk management. By integrating religiosity, ethical leadership and local wisdom, managers can design strategies to prevent asset misappropriation.Originality/valueThis research has the advantage of proposing an integrative model for mitigating asset misappropriation. Research on asset misappropriation is limited. Therefore, this study provides insights into fraud risk management, particularly in Indonesia's local governments. In addition, this study adds ethical aspects such as religiosity, leadership and local wisdom to complement the weaknesses of fraud risk management and reduce the potential for asset misappropriation.
EMERALD GROUP PUBLISHING LTD
1759-0817
1759-0825
2024


10.1108/JIABR-09-2022-0227
Business & Economics

WOS:001271185500001
https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001271185500001
title Religiosity, ethical leadership and local wisdom in moderating the effect of fraud risk management on asset misappropriation: evidence from local government in Indonesia
title_short Religiosity, ethical leadership and local wisdom in moderating the effect of fraud risk management on asset misappropriation: evidence from local government in Indonesia
title_full Religiosity, ethical leadership and local wisdom in moderating the effect of fraud risk management on asset misappropriation: evidence from local government in Indonesia
title_fullStr Religiosity, ethical leadership and local wisdom in moderating the effect of fraud risk management on asset misappropriation: evidence from local government in Indonesia
title_full_unstemmed Religiosity, ethical leadership and local wisdom in moderating the effect of fraud risk management on asset misappropriation: evidence from local government in Indonesia
title_sort Religiosity, ethical leadership and local wisdom in moderating the effect of fraud risk management on asset misappropriation: evidence from local government in Indonesia
container_title JOURNAL OF ISLAMIC ACCOUNTING AND BUSINESS RESEARCH
language English
format Article; Early Access
description PurposeThis study aims to examine the effects of religiosity, ethical leadership and local wisdom on the relationship between fraud risk management and asset misappropriation in Indonesia.Design/methodology/approachData were collected using a set of questionnaire surveys administered to the head office, local government internal auditors (inspectorate) and local government employees in Indonesia. Sample selection used purposive techniques and obtained 151 respondents who became research data. The dependent variable was asset misappropriation. The independent variable was fraud risk management. The moderating variables for this study were religiosity, leader ethics and local wisdom. The analysis technique applied the structural equation model-partial least square (SEM-PLS).FindingsFraud risk management has a significant negative effect on asset misappropriation. In addition, this study finds evidence that religiosity, ethical leadership and local wisdom increase fraud risk management against asset misappropriation.Research limitations/implicationsThis study proposes an integrative model that enables local governments to understand fraud risk management. By integrating religiosity, ethical leadership and local wisdom, managers can design strategies to prevent asset misappropriation.Originality/valueThis research has the advantage of proposing an integrative model for mitigating asset misappropriation. Research on asset misappropriation is limited. Therefore, this study provides insights into fraud risk management, particularly in Indonesia's local governments. In addition, this study adds ethical aspects such as religiosity, leadership and local wisdom to complement the weaknesses of fraud risk management and reduce the potential for asset misappropriation.
publisher EMERALD GROUP PUBLISHING LTD
issn 1759-0817
1759-0825
publishDate 2024
container_volume
container_issue
doi_str_mv 10.1108/JIABR-09-2022-0227
topic Business & Economics
topic_facet Business & Economics
accesstype
id WOS:001271185500001
url https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001271185500001
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collection Web of Science (WoS)
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