IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2020-01-3.html
   My bibliography  Save this article

Determinats of Fraud Prevention and Financial Performance as an Intervening Variable

Author

Listed:
  • Hendri Hendri

    (Sekolah Tinggi Ilmu Ekonomi Y.A.I., Jakarta, Indonesia.)

  • Yuliantoro Yuliantoro

    (Sekolah Tinggi Ilmu Ekonomi Y.A.I., Jakarta, Indonesia.)

  • Maksimilianus Kolot Ama

    (Sekolah Tinggi Ilmu Ekonomi Y.A.I., Jakarta, Indonesia.)

Abstract

The purpose of this study was to analyze the role of financial performance in mediating the effects of the performance of human resources, internal controls, standard operating procedures and organizational culture to the prevention of fraud. The population of this study is 58 Unit School and all schools and Power Finance unit manager Tarakanita School unit in Indonesia amounting to 202 people. The sampling method using a purposive sampling method. Data were processed amounting to 142 data with the dataa processing method using the Smart PLS. Hypothesis testing results showed that the quality of human resources and a significant positive effect on financial performance. Internal controls and a significant positive effect on financial performance. Standard operating procedure positive and significant impact on financial performance. Organizational culture positive and significant impact on the financial performance ko. Financial performance and significant positive effect on the prevention of fraud. The quality of human resources and a significant positive effect on the prevention of fraud. Internal controls and a significant positive effect on the prevention of fraud. Standard operating prprocedures positive and significant effect on the prevention of fraud. The organizational culture had no effect on the prevention of fraud. The results of the analysis of mediating variables using the Sobel test found that financial performance is able to mediate the effect of the quality of human resources, internal controls, standard operating procedures and organizational culture to the prevention of fraud.

Suggested Citation

  • Hendri Hendri & Yuliantoro Yuliantoro & Maksimilianus Kolot Ama, 2020. "Determinats of Fraud Prevention and Financial Performance as an Intervening Variable," International Journal of Economics and Financial Issues, Econjournals, vol. 10(1), pages 19-26.
    • Handle: RePEc:eco:journ1:2020-01-3
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/8955/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/8955/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Berry, Leonard L. & Gresham, Larry G., 1986. "Relationship retailing: transforming customers into clients," Business Horizons, Elsevier, vol. 29(6), pages 43-47.
    2. Cycyota, Cynthia S. & Ferrante, Claudia J. & Schroeder, Jessica M., 2016. "Corporate social responsibility and employee volunteerism: What do the best companies do?," Business Horizons, Elsevier, vol. 59(3), pages 321-329.
    3. Burkart, Mike & Panunzi, Fausto, 2006. "Agency conflicts, ownership concentration, and legal shareholder protection," Journal of Financial Intermediation, Elsevier, vol. 15(1), pages 1-31, January.
    4. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    5. Yakir Falik & Tom Lahti & Henrik Keinonen, 2016. "Does startup experience matter? Venture capital selection criteria among Israeli entrepreneurs," Venture Capital, Taylor & Francis Journals, vol. 18(2), pages 149-174, April.
    6. Nada Al Mehrzi & Sanjay Kumar Singh, 2016. "Competing through employee engagement: a proposed framework," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 65(6), pages 831-843, July.
    7. DeFond, Mark & Zhang, Jieying, 2014. "A review of archival auditing research," Journal of Accounting and Economics, Elsevier, vol. 58(2), pages 275-326.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Farid Ma'ruf & Ita Reinita Hadari & Dini Amalia, 2019. "Employee Motivation and Performance Models," International Review of Management and Marketing, Econjournals, vol. 9(6), pages 80-86.
    2. Elvie Maria, 2019. "The Influence of Organizational Culture, Compensation and Interpersonal Communication in Employee performance Through Work Motivation as Mediation," International Review of Management and Marketing, Econjournals, vol. 9(5), pages 133-140.
    3. S. Arunachalam & Sridhar N. Ramaswami & Pol Herrmann & Doug Walker, 2018. "Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 744-766, July.
    4. Abiodun Tope Samson, 2015. "The Impact of Entrepreneurial Orientation, Reconfiguring Capability and Moderation of Environmental Turbulence on Export Performance of SMEs in Nigeria," Journal of Economics and Behavioral Studies, AMH International, vol. 7(3), pages 76-87.
    5. Chahal, Hardeep & Gupta, Mahesh & Lonial, Subhash & Raina, Swati, 2019. "Operational flexibility-entrepreneurial orientation relationship: Effects and consequences," Journal of Business Research, Elsevier, vol. 105(C), pages 154-167.
    6. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    7. Avlonitis, George J. & Salavou, Helen E., 2007. "Entrepreneurial orientation of SMEs, product innovativeness, and performance," Journal of Business Research, Elsevier, vol. 60(5), pages 566-575, May.
    8. Poduška, Zoran & Nedeljković, Jelena & Nonić, Dragan & Ratknić, Tatjana & Ratknić, Mihailo & Živojinović, Ivana, 2020. "Intrapreneurial climate as momentum for fostering employee innovativeness in public forest enterprises," Forest Policy and Economics, Elsevier, vol. 119(C).
    9. Sebastian Kronenberger & Volker Laux, 2022. "Conservative Accounting, Audit Quality, and Litigation," Management Science, INFORMS, vol. 68(3), pages 2349-2362, March.
    10. Claudio Vitari & Elisabetta Raguseo, 2016. "Big data value and financial performance: an empirical investigation [Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data]," Post-Print halshs-01923271, HAL.
    11. Satyajit Majumdar & Gordhan K. Saini, 2016. "CSR in India: Critical Review and Exploring Entrepreneurial Opportunities," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 2(1), pages 56-79, January.
    12. Ghafran, Chaudhry & O'Sullivan, Noel, 2017. "The impact of audit committee expertise on audit quality: Evidence from UK audit fees," The British Accounting Review, Elsevier, vol. 49(6), pages 578-593.
    13. Hongyi Mao & Zongjun Wang & Lin Yi, 2021. "Does Entrepreneurial Orientation Lead to Successful Sustainable Innovation? The Evidence from Chinese Environmentally Friendly Companies," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    14. Sikandar Ali Qalati & Dragana Ostic & Gu Shuibin & Fan Mingyue, 2022. "A mediated–moderated model for social media adoption and small and medium‐sized enterprise performance in emerging countries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 846-861, April.
    15. Brigitte Kroon & Karina Voorde & Jules Timmers, 2013. "High performance work practices in small firms: a resource-poverty and strategic decision-making perspective," Small Business Economics, Springer, vol. 41(1), pages 71-91, June.
    16. Kausar, Asad & Shroff, Nemit & White, Hal, 2016. "Real effects of the audit choice," Journal of Accounting and Economics, Elsevier, vol. 62(1), pages 157-181.
    17. Zvi Singer & Jing Zhang, 2022. "Do companies try to conceal financial misstatements through auditor shopping?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(1-2), pages 140-180, January.
    18. Nurudeen Afolabi Sofoluwe, 2020. "Relevance of Entrepreneurial Orientation Strategy to Cooperative Business Organizations in Nigeria," Business & Management Compass, University of Economics Varna, issue 4, pages 415-429.
    19. Simone Aresu & Luigi Rombi & Andrea Cardia, 2019. "Management accounting systems in venture capital-backed start-up companies," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(3), pages 35-58.
    20. Arslan Ayub & Muhammad Salman Aslam & Hanan Iftekhar & Adeel Razzaq & Sabiha Hafeez, 2013. "Compete or Leapfrog: Creating Blue Ocean through Entrepreneurial Orientation," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(5), pages 211-221, October.

    More about this item

    Keywords

    Quality of human resources; internal controls; standard operating procedures; organizational culture; prevention of fraud;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2020-01-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.