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

Tarjo Tarjo · Alexander Anggono · Mohammad Nizarul Alim · Jamaliah Said · Zuraidah Mohd Sanusi

21 citations0/0 files storedJournal of Islamic accounting and business research

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Governance and Financial Management Ethics in Business and Education Financial Literacy and Behavior

Abstract

Purpose This 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/approach Data 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). Findings Fraud 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/implications This 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/value This 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.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 21 citations exist upstream.

References

2015The effects of ethical leadership, voice behavior and climates for innovation on creativity: A moderated mediation examination 2014The Effect of Ethical Leadership Behavior on Ethical Climate, Turnover Intention, and Affective Commitment 2012How Ethical Leadership Influence Employees’ Innovative Work Behavior: A Perspective of Intrinsic Motivation 2015A revised framework of social exchange theory to investigate the factors influencing residents' perceptions 2020The intermediating role of organizational culture and internal analytical knowledge between the capability of big data analytics and a firm’s performance 2013Ethical leadership, moral equity judgments, and discretionary workplace behavior 2005Construction Project Management 2018Integrating religiosity into fraud triangle theory: findings on Malaysian police officers

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.