Innovation Business Management and Accounting Journal

Determining the Propensity for Accounting Fraud: The Role of Internal Control, Regulatory Compliance, and Unethical Behavior

2025-12-29T09:15:37+00:00

The tendency of accounting fraud is a serious risk that can harm an organization economically and reduce stakeholder trust. This phenomenon is not only related to weaknesses in the accounting system, but is also influenced by the behavioral aspects of individuals within the organization. This study aims to analyze the influence of internal control, compliance with accounting rules, and unethical behavior on the tendency of accounting fraud at PT Ciomas Adisatwa Tbk, East Java Region I, Malang. The study used a quantitative approach with primary data obtained through questionnaires to 68 respondents involved in accounting and administrative functions. Data analysis was performed using multiple linear regression after going through validity, reliability, and classical assumption tests. The results of the study indicate that internal control and compliance with accounting rules do not significantly influence the likelihood of accounting fraud. Conversely, unethical behavior has been shown to have a positive and significant effect on the likelihood of accounting fraud. This finding indicates that individual behavioral factors play a more dominant role than structural aspects in triggering fraud. This study implies that fraud prevention efforts need to be implemented through an integrated approach that includes strengthening control systems, procedural compliance, and internalizing ethical and integrity values to achieve sustainable and accountable corporate governance.

The Effect of Intellectual Intelligence, Emotional Intelligence and Communication on the Performance of Village Officials in Somagede District

2026-01-06T08:22:30+00:00

This study focuses on factors that influence employee performance, which are considered important to ensure readiness in facing the dynamics of local village community services. This study aims to analyze the influence of intellectual intelligence, emotional intelligence, and communication on the performance of village officials in Somagede sub-district. This study is a quantitative study using a saturated sampling method, in which the researcher made all village officials in Somagede sub-district as a research sample, totaling 100 respondents. Data were collected using a questionnaire and processed using SPSS analysis. The results of this study indicate that intellectual intelligence, emotional intelligence, and communication have a positive and significant effect on performance. This study provides implications for village officials to conduct regular training. In addition, it is hoped that it will create a conducive, collaborative, and mutually respectful work environment that can trigger improved performance.

Corporate Governance Characteristics and Their Impact on Accounting Conservatism in SOEs Listed in the BUMN20 Index

2026-01-21T07:24:25+00:00

This study examines influence of corporate governance characteristics on accounting conservatism in State Owned Enterprises (SOEs) listed in the BUMN20 Index of Indonesia Stock Exchange during 2019–2023 period. The characteristics analyzed include audit committee, audit committee meetings, board of commissioners, independent commissioners, CEO retirement, and board of directors. Using a quantitative method with an associative approach, the study employs multiple linear regression to analyze data obtained from purposively selected SOEs within BUMN20 Index. The findings show that certain governance characteristics specifically board of commissioners and independent commissioners have a significant negative effect on accounting conservatism, while board of directors shows a significant positive influence. In contrast, audit committee, audit committee meetings, and CEO retirement exhibit no significant impact. These results emphasize the role of strong governance in improving financial reporting quality, particularly through application of conservative accounting practices to reduce risk of financial manipulation. However, the insignificance of audit committee variables suggests that their function in SOEs remains largely formalistic and not fully effective in overseeing accounting policies. Strengthening the competence, independence, and involvement of audit committees is therefore essential. Overall, this study contributes insights for academics, practitioners, and regulators in enhancing transparency, accountability, and public trust in SOEs.

Application of the COSO Framework in Internal Control of University Cooperatives: A Comparative Case Study in Indonesia

2026-01-27T06:12:36+00:00

This study aims to explore the application of COSO framework-based internal control in university cooperatives in Indonesia. This study uses a qualitative approach with a comparative case study strategy in three university cooperatives. Data were collected through in-depth interviews, participatory observation, and document analysis, then analyzed using thematic analysis to identify patterns, compare practices between cooperatives, and interpret internal control dynamics. Validity was strengthened through triangulation of sources and methods, member checking, and audit trails. Findings indicate variations in the implementation of internal controls. The STIE Mandala Cooperative still faces fundamental weaknesses, particularly in risk assessment and control activities, which are more administrative than substantive in nature. In contrast, the Artha STIESIA Employee Cooperative demonstrates good practices with the involvement of professionally competent supervisors, resulting in more substantive risk assessment and monitoring. The Muhammadiyah University Jember Employee Cooperative exhibits more systematic governance through formal document validation, competency-based personnel placement, and performance-based monitoring. This study confirms that effective internal control in university cooperatives requires a combination of a healthy organizational culture, formal document-based governance, expert involvement, and an integrated information system. The practical implication is the need to strengthen cooperative governance through document validation, utilization of competent human resources, and implementation of performance-based monitoring mechanisms to improve transparency and accountability. This study makes an original contribution by examining the application of the COSO framework in the context of university cooperatives in Indonesia, which has been relatively rarely studied. The comparative qualitative approach allows for an in-depth exploration of social and institutional dynamics, thereby broadening theoretical understanding and offering practical recommendations for strengthening member-based cooperative governance.

When Financial Literacy is Not Enough: Assessing the Mediating Roles of Self-Efficacy and Behavior on Financial Well-being in Malang City

2026-01-29T13:51:25+00:00

This study investigates the determinants of financial well-being among the residents of Malang City, specifically examining the mediating roles of financial self-efficacy and financial behavior. Using an explanatory research design with a quantitative approach, data were collected via structured questionnaires from 150 respondents across three generational cohorts (X, Y, and Z). The data were analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The results reveal that while financial literacy significantly strengthens both financial self-efficacy and financial behavior, it does not exert a direct impact on financial well-being. Notably, financial behavior also failed to act as a significant mediator in this relationship. Instead, financial self-efficacy emerged as a potent full mediator and the most critical predictor of financial welfare. These findings suggest that in a dynamic urban economy, technical knowledge and routine habits are insufficient without the psychological confidence to manage personal finances. To achieve holistic financial well-being, policymakers should shift from basic literacy programs to psychological empowerment initiatives that build inner conviction and mental resilience. This research highlights that the "psychological bridge" is far more essential than the "behavioral bridge" in translating knowledge into a secure financial future.

Implementing Green Human Resource Management in Local Government: Evidence from Bogor City, Indonesia

2026-01-29T14:17:17+00:00

The growing urgency of environmental sustainability has increased the importance of integrating green principles into organizational management, particularly within the public sector. This study examines the implementation of Green Human Resource Management (GHRM) in the Bogor City Government, Indonesia, and assesses its current state and improvement strategies. Employing a qualitative descriptive approach, data were collected through in-depth interviews with key informants from several local government agencies, complemented by document analysis and field observations. The study analyzes five core dimensions of GHRM: green recruitment and selection, green training and development, green performance management, green compensation and rewards, and green employee involvement. The findings reveal that GHRM implementation in Bogor City remains partial, implicit, and largely informal. Although initiatives such as digitalization, eco-office practices, and employee participation in environmental activities are evident, green principles have not been systematically integrated into formal human resource policies. Major challenges include limited environmental competencies among civil servants, the absence of environmental indicators in performance appraisal systems, and weak incentive mechanisms. This study contributes to the literature on sustainable public management by highlighting micro-level human resource challenges in developing-country contexts and offers practical recommendations to institutionalize GHRM for strengthening organizational sustainability and public service quality.