The effect of morality and Machiavellianism on government fraud: The moderating role of education
-
Received February 21, 2023;Accepted July 5, 2023;Published July 18, 2023
-
Author(s)Link to ORCID Index: https://orcid.org/0000-0001-7611-7676Link to ORCID Index: https://orcid.org/0000-0002-2053-5235Link to ORCID Index: https://orcid.org/0009-0007-2164-543XLink to ORCID Index: https://orcid.org/0000-0001-9786-9391Link to ORCID Index: https://orcid.org/0000-0003-3678-249X
-
DOIhttp://dx.doi.org/10.21511/ppm.21(3).2023.08
-
Article InfoVolume 21 2023, Issue #3, pp. 100-112
- TO CITE АНОТАЦІЯ
-
Cited by1 articlesJournal title: International Journal of Ethics and SystemsArticle title: Fraud intention and the relationship with selfishness: the mediating role of moral justification in the accounting professionDOI: 10.1108/IJOES-10-2023-0220Volume: / Issue: / First page: / Year: 2024Contributors: Lum Çollaku, Arbana Sahiti Ramushi, Muhamet Aliu
- 579 Views
-
202 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The high number of fraud cases in governments has increasingly become a concern among academics and practitioners. Many approaches can be used to minimize fraud cases. However, the role of education in the influence of personality on fraud in the Indonesian government has not been considered. Thus, this study aims to analyze the influence of morality and Machiavellianism as personality factors leading to fraud. Education was tested as a moderating variable. This quantitative study involved a sample of Pekanbaru City government officials. To collect data, questionnaires were sent directly to the respondents. Through the purposive sampling technique, 251 samples were collected. A structural equation with partial least squares was used to test the hypotheses. The test results show that all the proposed hypotheses are accepted. Morality affects fraud with a p-value < 0.001, less than 0.05. Machiavellianism affects fraud with a p-value < 0.001. Education moderates the relationship between morality and fraud with a p-value of 0.048, less than 0.05. Moreover, education moderates the relationship between Machiavellianism and fraud with a p-value < 0.001, less than 0.05. In conclusion, this study contributes to shaping government officials’ behavior to prevent fraud. Character building and high education standards for officials must be integrated to reduce the risk of abuse in Indonesian government.
- Keywords
-
JEL Classification (Paper profile tab)M40, M41, M42, M48
-
References73
-
Tables7
-
Figures1
-
- Figure 1. Structural equation model
-
- Table 1. Definition and measurement of variables
- Table 2. Demographics
- Table 3. Descriptive statistics
- Table 4. Factor loading, AVE, reliability, and R square
- Table 5. AVE root results and correlation coefficients
- Table 6. Model fit and quality indices
- Table 7. Hypothesis testing results
-
- Ariyanto, R., & Bone, H. (2020). Fraud awareness in Indonesian governmental sector: Multi-agency responses. Review of Integrative Business and Economics Research, 9(s2), 209-222.
- Association of Certified Fraud Examiners (ACFE). (2014). Report to The Nation on Occupational Fraud And Abuse (80 p.).
- Atmadja, A. T., Saputra, K. A. K., Tama, G. M., & Paranoan, S. (2021). Influence of human resources, financial attitudes, and coordination on cooperative financial management. The Journal of Asian Finance, Economics and Business, 8(2), 563-570.
- Basri, Y. M. (2022). Determinants of fraud in the public sector: A study on village government in Indonesia. Mudra: Journal of Finance and Accounting, 9(1), 93-113.
- Basri, Y. M., Fadilla, O., & Al Azhar, A. A. (2021). Determinants of fraud in the village government: The pentagon’s fraud perspective. Journal of Accounting Research, Organization and Economics, 4(2), 173-187.
- Bologna, J. (1993). The accountant’s handbook of fraud and commercial crime. Wiley.
- Carré, J. R., Jones, D. N., & Mueller, S. M. (2020). Perceiving opportunities for legal and illegal profit: Machiavellianism and the dark triad. Personality and Individual Differences, 162, 109942.
- Cohen, J. R., Pant, L. W., & Sharp, D. (2001). An examination of differences in ethical decision-making between Canadian business students and accounting professionals. Journal of Business Ethics, 30(4), 319-336.
- Dammak, S., Mbarek, S., & Jmal, M. (2022). The Machiavellianism of Tunisian accountants and whistleblowing of fraudulent acts. Journal of Financial Reporting and Accounting.
- De Graaf, G., Huberts, L., & Strüwer, T. (2018). Integrity violations and corruption in western public governance: Empirical evidence and reflection from the Netherlands. Public Integrity, 20(2), 131-149.
- Desiana, D., Susilowati, D., & Putri, N. K. (2018). Faktor-faktor yang mempengaruhi keputusan nasabah untuk menggunakan jasa perbankan Syariah di kota Tasikmalaya [Factors influencing customer decisions to use Sharia banking services in Tasikmalaya City]. Akuntabilitas, 11(1), 23-34. (In Indonesian).
- Doris, J. M. (2002). Lack of character: Personality and moral behavior. Cambridge University Press.
- Duska, R., & Whelan, M. (1975). Moral development: A guide to Piaget and Kohlberg. New York: Paulist Press.
- Farhan, M., Helmy, H., & Afriyenti, M. (2019). Pengaruh Machiavellian dan love of money terhadap persepsi etika penggelapan pajak dengan religiusitas sebagai variabel moderasi (Studi empiris pada wajib pajak di kota padang). Jurnal Eksplorasi Akuntansi (JEA), 1(1), 470-486. (In Indonesian).
- Fernandhytia, F., & Muslichah, M. (2020). The effect of internal control, individual morality and ethical value on accounting fraud tendency. Media Ekonomi Dan Manajemen, 35(1), 112-127.
- Fihandoko, S. (2014). Pengaruh sifat sinisme, lingkungan dan sifat Machiavellian terhadap tindakan kecurangan akademik. Jurnal Ilmiah Mahasiswa FEB Universitas Brawijaya Malang, 3(1). (In Indonesian).
- Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
- Ghozali, I. (2014). Partial least square: Concepts, techniques and applications of SmartPLS. Universitas Diponegoro.
- Ghozali, I., & Latan, H. (2015). Partial least squares: Concepts, techniques and applications using Smarts Pls 3 (2nd ed.). Universitas Diponegoro.
- Haidt, J., & Kesebir, S. (2010). Morality. In S. T. Fiske, D. T. Gilbert, & G. Lindzey (Eds.), Handbook of social psychology (pp. 797-832). John Wiley & Sons, Inc.
- Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications.
- Hair, J. F., Black, W. C., Babin, J. B., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Pearson.
- Haqq, A., & Budiwitjaksono, G. S. (2019). Fraud pentagon for detecting financial statement fraud. Journal of Economics, Business, and Accountancy Ventura, 22(3), 319-332.
- Hayati, N., & Amalia, I. (2021). The effect of religiosity and moderation of morality on fraud prevention in the management of village funds. The Indonesian Accounting Review, 11(1), 105-114.
- Head, G. (2020). Ethics in educational research: Review boards, ethical issues and researcher development. European Educational Research Journal, 19(1), 72-83.
- Helmayunita, N., Handayani, D. F., Serly, V., & Betavia, A. E. (2022). The tendency to commit fraud from the aspect of individual factors. Proceedings of the Eighth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-8 2021) (pp. 2-6).
- Ikhwan, A., & Fauzi, F. T. (2019). Islam and civilization: Islam as source of value for human life. Proceedings of 1st Workshop on Environmental Science, Society, and Technology, WESTECH 2018. Medan, Indonesia.
- Jaffar, N., Haron, H., Iskandar, T. M., & Salleh, A. (2011). Fraud risk assessment and detection of fraud: The moderating effect of personality. International Journal of Business and Management, 6(7), 40-50.
- Kabuye, F., Nkundabanyanga, S. K., Opiso, J., & Nakabuye, Z. (2018). Internal audit organisational status, competencies, activities and fraud management in the financial services sector. Managerial Auditing Journal, 32(9), 924-944.
- Kamis, K. (2020, June 25). KPK Ungkap 10 Provinsi Paling Korup di Indonesia, Riau Sepuluh Besar! Halloriau. (In Indonesian).
- Kessler, S. R., Bandelli, A. C., Spector, P. E., Borman, W. C., Nelson, C. E., & Penney, L. M. (2010). Re-examining Machiavelli: A three-dimensional model of Machiavellianism in the workplace. Journal of Applied Social Psychology, 40(8), 1868-1896.
- Kesumawati, L. E., & Pramuki, N. M. W. A. (2021). Pengaruh pengendalian internal dan moralitas individu terhadap kecurangan (fraud). Hita Akuntansi Dan Keuangan, 2(2), 524-543.
- Kohlberg, L. (1971). From is to ought: How to commit the naturalistic fallacy and get away with it in the study of moral development. Academic Press.
- Kurniawan, A., & Anjarwati, A. (2020). Does love of money, Machiavellian, religiosity, socioeconomic status, and understanding of the accountant’s code of ethics affect the ethical perception of accounting students? Proceedings of the 1st International Conference on Accounting, Management and Entrepreneurship (ICAMER 2019) (pp. 33-37).
- Kurniawan, P. C., & Azmi, F. (2019). The effect of management morality on accounting fraud with internal control as a moderating variable (Study in Pemalang Regency). Riset Akuntansi Dan Keuangan Indonesia, 4(2), 177-185.
- Lau, C. L. L. (2010). A step forward: Ethics education matters! Journal of Business Ethics, 92(4), 565-584.
- Mauboy, B. E., & Pesudo, D. A. A. (2019). Machiavellian traits, student professional commitment to cheating intentions with gender as a moderate variable. Accounting and Financial Review, 2(2), 119-125.
- Merdeka. (2019, December 10). Sepanjang 2019, 28 ASN di Riau Tersandung Kasus Korupsi. (In Indonesian).
- Naher, N., Hoque, R., Hassan, M. S., Balabanova, D., Adams, A. M., & Ahmed, S. M. (2020). The influence of corruption and governance in the delivery of frontline health care services in the public sector: A scoping review of current and future prospects in low and middle-income countries of south and south-east Asia. BMC Public Health, 20, 1082.
- Nindito, M. (2018). Financial statement fraud: Perspective of the pentagon fraud model in Indonesia. Academy of Accounting and Financial Studies Journal, 22(3), 1-9.
- Norris, G., & Brookes, A. (2021). Personality, emotion and individual differences in response to online fraud. Personality and Individual Differences, 169, 109847.
- Norris, G., Brookes, A., & Dowell, D. (2019). The psychology of internet fraud victimisation: A systematic review. Journal of Police and Criminal Psychology, 34, 231-245.
- Noviyanti, N. L. P., Rustiarini, N. W., & Dewi, N. P. S. (2021). Do individual characteristics and bystander effect increase the accounting fraud? Jurnal Riset Akuntansi (JUARA), 11(2), 321-334.
- Othman, Z., Nordin, M. F. F., & Sadiq, M. (2020). GST fraud prevention to ensure business sustainability: A Malaysian case study. Journal of Asian Business and Economic Studies, 27(3), 245-265.
- Putri, P. A. A., & Irwandi, S. A. (2016). The determinants of accounting fraud tendency. The Indonesian Accounting Review, 6(1), 99-108.
- Raharjo, F. D. (2015). Factors influencing internal whistleblowing reporting with education levels as moderating variables of employee perceptions at Pt. Krakatau Steel (Persero) Tbk. Media Riset Akuntansi, Auditing Dan Informasi, 15(2), 103-116.
- Ramamoorti, S. (2008). The psychology and sociology of fraud: Integrating the behavioral sciences component into fraud and forensic accounting curricula. Issues in Accounting Education, 23(4), 521-533.
- Restya, W. P. D., & Amalia, H. (2019). Corrupt behavior in a psychological perspective. Asia Pacific Fraud Journal, 4(2), 177-182.
- Richmond, K. A. (2001). Ethical reasoning, Machiavellian behavior, and gender: The impact on accounting students’ ethical decision making. Virginia Polytechnic Institute and State University.
- Rizaty, M. A. (2022, July 22). Kejaksaan Agung Tangani 371 kasus korupsi sepanjang 2021 [The Attorney General’s Office handles 371 corruption cases throughout 2021]. Dataindonesia.Id. (In Indonesian).
- Rottweiler, B., & Gill, P. (2022). Conspiracy beliefs and violent extremist intentions: The contingent effects of self-efficacy, self-control and law-related morality. Terrorism and Political Violence, 34(7), 1485-1504.
- Rusdianti, I. S., Irmadariyani, R., & Kustono, A. S. (2022). E-finance: Mitigation of fraud tendency in Indonesia. IJEBD (International Journal of Entrepreneurship and Business Development), 5(3), 574-582.
- Rustiarini, N. W., Sutrisno, S., Nurkholis, N., & Andayani, W. (2019). Fraud triangle in public procurement: Evidence from Indonesia. Journal of Financial Crime, 26(4), 951-968.
- Sabău, E. M. (2013). Fraud risk management – Human rationalization assessment. Business Excellence and Management, 3(1), 41-56.
- Sanad, Z., & Al-Sartawi, A. (2021). Financial statements fraud and data mining: A review. In A. M. Musleh Al-Sartawi, A. Razzaque, & M. M. Kamal (Eds.), Artificial Intelligence Systems and the Internet of Things in the Digital Era: Proceedings of EAMMIS 2021 (pp. 407-414). Springer.
- Saputra, K. A. K., Subroto, B., Rahman, A. F., & Saraswati, E. (2020). Issues of morality and whistleblowing in short prevention accounting. International Journal of Innovation, Creativity and Change, 12(3), 77-88.
- Septiningsih, D. (2021). Pengaruh keefektifan pengendalian internal, kesesuaian kompensasi, asimetri informasi dan moralitas individu terhadap fraud dengan perilaku tidak etis sebagai variabel intervening pada pemerintah daerah Boyolali [The influence of internal control effectiveness, appropriateness of compensation, information asymmetry and individual morality against fraud with unethical behavior as intervening variables in Boyolali regional government]. Institut Agama Islam Negeri Salatiga.
- Setiawan, S. (2018). The effect of internal control and individual morality on the tendency of accounting fraud. Asia Pacific Fraud Journal, 3(1), 33-41.
- Setiawan, S., Carolina, Y., & Kristiani, A. (2020). The effect of auditor’s competence and independence on information system audit quality. Asia Pacific Fraud Journal, 5(2), 183-190.
- Sholihin, M., & Ratmono, D. (2013). Analisis SEM-PLS dengan Warp PLS 3.0. Andi Offset Yogyakarta. (In Indonesian).
- Siddiquee, N. A., & Zafarullah, H. (2022). Absolute power, absolute venality: The politics of corruption and anti-corruption in Malaysia. Public Integrity, 24(1), 1-17.
- Sosler, A. (2019). Reason, love, and morality: The limits of reason in Kohlberg and the importance of love in Augustine and Smith. Religious Education, 114(1), 69-81.
- Sugiyono. (2016). Qualitative quantitative research methods and R&D. Alfabeta.
- Suprapta, E. L., & Padnyawati, K. D. (2021). Pengaruh pengendalian intern kas, financial pressure, kesesuaian kompensasi, dan moralitas individu terhadap kecurangan (fraud) pada lpd di kecamatan tampaksiring gianyar. Hita Akuntansi Dan Keuangan Universitas Hindu Indonesia, 2(1), 144-166. (In Indonesian).
- Sutton, J., & Keogh, E. (2000). Social competition in school: Relationships with bullying, Machiavellianism and personality. British Journal of Educational Psychology, 70(3), 443-456.
- Talib, D. C., & Kusumawati, A. (2020). The influence of fraud diamond theory and gone theory of fraud at hospital of Dr. Tadjuddin Chalid Makassar. IOSR Journal of Economics and Finance (IOSR-JEF), 11(6), 47-52.
- Tirtarahardja, U. (2005). Pengantar Pendidikan. Jakarta: Rineka Cipta.
- Triantoro, H. D., Utami, I., & Joseph, C. (2020). Whistleblowing system, Machiavellian personality, fraud intention: An experimental study. Journal of Financial Crime, 27(1), 202-216.
- Walker, M. U. (2007). Moral understandings: A feminist study in ethics. Oxford University Press.
- Wilopo, W. (2006). Analisis faktor-faktor yang berpengaruh terhadap kecenderungan kecurangan akuntansi: Studi pada perusahaan publik dan badan usaha milik negara di Indonesia [Analysis of factors influencing the tendency of accounting fraud: Studies on public companies and state owned enterprises in Indonesia]. The Indonesian Journal of Accounting Research, 9(3). (In Indonesian).
- Zahari, A. I., Said, J., & Muhamad, N. (2022). Public sector fraud: The Malaysian perspective. Journal of Financial Crime, 29(1), 309-324.
- Zahra, F., Abdullah, M. I., Kahar, A., Din, M., & Nurfalah, N. (2021). Preventing procurement fraud in e-purchasing for Indonesian local governments. Journal of Asian Finance, Economics and Business, 8(2), 505-511.
- Zirman, Z., & Basri, Y. M. (2014). Machiavellianisme, etika dan tanggung jawab sosial: Keputusan etis dalam penghindaran pajak [Machiavellianism, ethics and social responsibility: Ethical decisions in tax avoidance]. Jurnal Sains Akuntansi Indonesia, 1(1), 73-84. (In Indonesian).
-
-
Conceptualization
Yesi Mutia Basri, Novita Indrawati
-
Data curation
Yesi Mutia Basri
-
Formal Analysis
Yesi Mutia Basri, Mariana
-
Funding acquisition
Yesi Mutia Basri
-
Investigation
Yesi Mutia Basri, Mariana, Poppy Nurmayanti
-
Methodology
Yesi Mutia Basri, Hariadi Yasni, Mariana
-
Project administration
Yesi Mutia Basri, Hariadi Yasni, Mariana, Poppy Nurmayanti
-
Writing – original draft
Yesi Mutia Basri
-
Software
Hariadi Yasni, Poppy Nurmayanti, Novita Indrawati
-
Supervision
Hariadi Yasni, Poppy Nurmayanti, Novita Indrawati
-
Validation
Hariadi Yasni
-
Writing – review & editing
Hariadi Yasni, Mariana, Poppy Nurmayanti
-
Resources
Mariana, Novita Indrawati
-
Visualization
Poppy Nurmayanti
-
Conceptualization
-
Industrial Revolutions and their impact on managerial practice: Learning from the past
Problems and Perspectives in Management Volume 17, 2019 Issue #2 pp. 462-478 Views: 4222 Downloads: 1791 TO CITE АНОТАЦІЯTechnological changes that come with industrial revolution have largely affected businesses, as well as society. With the current technological shift and Fourth Industrial Revolution, many questions arise regarding the impacts and effects on current ways businesses operate. This study presents a retrospective analysis and overview of previous industrial revolutions. The aim of the retrospective analysis is to identify common characteristics that may lead to lessons learned for the forthcoming Fourth Industrial Revolution and thus complement the current debate on technological change. All previous industrial revolutions have led to change in business environments and new challenges for managers and owners. The findings show that all previous revolutions have led to increase in the number of service jobs created. The key approach of successful countries during the times of industrial revolution has included education as the source of new skills and knowledge necessary for adaption. Countries that were able to produce high skilled people could not only invent, but also adapt to new technologies sooner than others. Similarly, these approaches included introduction of new managerial practices in order to be able to utilize new technologies and new skilled workers effectively. The research article processes secondary data together with literature review on this topic.
-
The influence of servant leadership on job satisfaction with individual character as a moderating variable
Bakri Hasanuddin , Mustainah M , Pricylia Chintya Dewi Buntuang doi: http://dx.doi.org/10.21511/ppm.19(1).2021.37Problems and Perspectives in Management Volume 19, 2021 Issue #1 pp. 445-455 Views: 3726 Downloads: 1671 TO CITE АНОТАЦІЯThis study aims to investigate the influence of servant leadership on job satisfaction with individual character as a moderating variable. It used a quantitative approach with multiple linear regression analysis. The population of this study were employees of the Central Sulawesi province industry and trade office. It involved 72 samples selected using a purposive sampling technique. The results showed that servant leadership significantly influence job satisfaction with a value of 82.5%. The most significant factor affecting job satisfaction is wisdom (correlation coefficient = 0.863) in which the higher the wisdom, the higher the job satisfaction. The next factor is persuasive mapping in which the higher the persuasive mapping, the higher the job satisfaction (correlation coefficient = 0.697). Then, it was followed by altruistic calling with the correlation coefficient value of 0.524 in which the higher the altruistic calling, the higher the job satisfaction. The last is emotional healing with a correlation coefficient value of 0.291 in which the higher the emotional healing, the higher the job satisfaction. On the other hand, organizational stewardship is the only factor does not influence the job satisfaction (correlation coefficient = 0.009).
-
Influence of the dimensions of CSR activities on consumer purchase intention
Vinod Sharma , Jeanne Poulose , Subhasmita Mohanta , Liza Elizabeth Antony doi: http://dx.doi.org/10.21511/im.14(1).2018.03Over the years, the number of organizations investing in CSR activities has increased considerably. This increase is partially attributable to the intention of the organizations to give back to the society to repair and reduce the loss their intentional or unintentional actions might have caused to the environment. The government’s decision to make it mandatory for businesses to invest a small part of their net profit in social welfare activities has also helped nudge the organizations towards CSR activities. However, the question whether this investment influences customers’ intention to purchase the product in any manner remains an unresolved paradox. Limited researches have been conducted in this area to explore and establish the relationship if any between CSR and consumer purchase intention. This research focuses on the five different factors of CSR comprising of loyalty, morality, awareness, behavior and environment, which are identified from the previous literature. With the help of these factors, the authors researched and established the relationship between them and consumer purchase intention. In this descriptive research, the research questionnaire was distributed to 1500 respondents, using convenient sampling method, out of which 319 responses were finally obtained for the analysis purpose. After testing the reliability and validity of the data, the five hypotheses were tested using SEM (Structural Equation Modeling). It was found that all the five hypotheses were supported and thereby acknowledged the significant influence of CSR related activities performed by companies on the consumer purchase intention. The CSR driven morality is emerging to be the most important dimension that appears to influence the consumer purchase intentions. These finding will help decision-makers to formulate their promotion activities in such a manner that it aligns with the value system of the consumers and increase the overall consumer base.