THE INFLUENCE OF INTERNAL CONTROL, COMPENSATION SUITABILITY, CORPORATE ETHICAL CULTURE, COMPETENCY, ORGANIZATIONAL JUSTICE, STANDARDS ENFORCEMENT, ASYMMETRIC INFORMATION TO FRAUD IN BANKING

Abstract

Purpose – The aim of this study was to determine the influence of internal control, compensation suitability, corporate ethical culture, competency, organizational justice, standards enforcement, asymmetric information on fraud in banking.

Design/methodology/approach – To test the hypothesis and Multiple Regression Analyses are applied to questionnaire survey data from 88 Employees from Anonymous Banking.

Findings – The results revealed internal control and standards enforcement have a negative effect on fraud in banking, competency and asymmetric information have a positive effect on fraud in banking, but compensation suitability, corporate ethical culture, and organizational justice do not affect fraud in banking.

Research limitations/implications – This study provides relevant empirical evidence in explaining the phenomena or factors that influence fraud intentions based on Attribution Theory.

Originality/value – This study has made a valuable contribution for scholars and relevant institute to understanding factors that affect fraud intention in banking.

Keywords: Internal control, compensation suitability, corporate ethical culture, competency, organizational justice, standards enforcement, asymmetric information, fraud in banking.