Determinant of Fraudulent in Government: An Empirical Analysis in Situbondo Regency, East Java, Indonesia

Abstract

This study aims to explore the perception of employees at financial sector regarding the effect of Compliance Compensation, procedural fairness, law enforcement, effectiveness of internal control, ethical organizational culture, and commitment to organization on fraud in the government sector. The research involved 121 employees as samples of 26 SKPDs (local government work unit) in Situbondo Regency. Samples were taken by purposive sampling. Data were collected by questionnaires. The results showed that Compliance Compensation had no effect on fraud in the government sector, procedural fairness had a negative effect on fraud in the government sector, law enforcement had no effect on fraud in the government sector, effectiveness of internal control had no effect on fraud in the government sector, ethical organizational culture had a negative effect on fraud in the government sector, organizational commitment had a negative effect on fraud in the government sector.