The Effect Of Compensation And Islamic Corporate Governance On Fraud Prevention With Islamic Organizational Culture As A Moderating Variable

Abstract

Purpose - This research aims to obtain empirical evidence about the influence of Compensation and Islamic Corporate Governance on Fraud Prevention with Islamic Organizational Culture as a moderating variable.

Design/methodology/approach - This research uses quantitative type of research. This research was conducted using a questionnaire distributed to staff who work at Islamic Financial Institutions such as Islamic Banks, Islamic Insurance, Islamic Pawnshops, Islamic Securities, and BMTs, namely 200 questionnaires distributed via social media. Each questionnaire distributed contained 81 statements to be answered by respondents. From the distribution of questionnaires conducted, 112 respondents were obtained who provided answers from 3 regions. To get the results of this study, researchers used PLS SEM Version 3.0. 

Finding - The results of this study found that Compensation has a positive and significant effect on Fraud Prevention, Islamic Corporate Governance has a positive and insignificant effect on Fraud Prevention, Islamic Organizational Culture can strengthen the relationship between Compensation on Fraud Prevention, and Islamic Organizational Culture cannot strengthen the relationship between Islamic Corporate Governance on Fraud Prevention.

Originality/value - This research focuses on Islamic Corporate Governance and Islamic Organizational Culture, where this research is a new research in discussing the relationship between Corporate Governance and Organizational Culture based on Islamic values.