The Effect Of Islamic Work Ethic and Islam Corporate Governance On Financial Reporting Quality with Fraud Prevention as Moderating Variable

Abstract

Purpose – This study aims to obtain empirical evidence on the influence of Islamic Work Ethic, Islam Corporate Governance, on Financial Reporting Quality with Fraud Prevention as variable moderating.

Design/methodology/approach – The research uses a quantitative method with primary data. The population in this study comprises employees incorporated in islamic financial institutions banks scattered in Bekasi City and in Sampit City. The sampling technique used is random sampling and snowball sampling, resulting in questionnaire data of 60 respondents. The analytical technique used to test the hypothesis is multiple regression analysis using Partial Least Square (PLS).

Findings – The results of this study indicate that the variables of Islamic Work Ethic and Islam Corporate Governance have a positive and statistically insignificant effect with Fraud Prevention worked out as a moderator which strengthens Islamic Work Ethic and Islam Corporate Governance on Financial Reporting Quality

Research limitations/implications  – This study examines how the enforcement of ethical accounting based on islamic values and islamic corporate governance in islamic financial institutions can affect the quality of their financial reporting. This study focuses on Islamic financial institutions and uses questionnaire data from 60 respondents.