The presence of female legislators: fraud triangle elements and fraud

Abstract

Purpose The main objective of this study is to investigate the mediating effect of fraud triangle elements in the relationship between the presence of female legislators and fraud. In addition, this study examines the impact of fraud triangle elements on fraud, as well as the role of female legislators in contributing to these elements. Design/methodology/approach This paper conducted the study in all Indonesian provincial governments between 2016 and 2018, using purposive sampling techniques and observation periods. This process yielded a total sample of 102 observations. This research uses factor analysis, principal component analysis, and mediating regression methods. Before carrying out factor analysis and PCA to reduce variables and mediation analysis, multivariate assumption tests have been carried out. Findings The results of this study indicate that the fraud triangle element does not have a mediating effect on the relationship between the presence of female legislators and fraud. On the contrary, the presence of female legislators has a direct effect on fraud, indicating that the presence of female legislators can provide variation in policymaking, especially in terms of improving performance, supervision, strengthening governance and preventing fraudulent activities. This study encourages fraud prevention efforts so that the Indonesian Government prioritizes strengthening ethical character among state administrators by considering the gender dimension accompanied by an in-depth evaluation of individual track records. Research limitations/implications This research has limitations in terms of sample size which needs to be expanded to district and city governments. Then, this research only uses fraud triangle theory and it can be developed to carry out investigations using fraud diamond theory. Practical implications This paper critically analyzes the existence of female legislators through an approach to controlling elements of the fraud triangle in preventing fraud, especially in Indonesia which is still faced with high levels of fraud. Social implications Characteristics or demographics represented by the presence of female legislators play an important role in preventing and reducing fraud in Regional Governments in Indonesia. The presence of female legislators provides diversity in behavior and taking action, especially in monitoring and ratifying budgets and regulations. Originality/value This paper contributes to the literature by investigating the existence of female legislators in controlling fraud triangle elements and mitigating fraud, which are still unexplored, by combining gender factors in legislators and controlling fraud risk elements simultaneously within a single framework of the context of provincial government in Indonesia. Enhance understanding and provide a framework to inform the Indonesian Government’s strategies for mitigating fraud incidents.