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Compensation and Islamic Corporate Governance as Predictors of Fraud Tendency: The Moderating Role of Religiosity among BMT Employees in Semarang

Year: 2026

Type: article

Abstract: Background: Fraud exposure can erode the legitimacy and operational resilience of Islamic microfinance institutions. Objective: This study assesses whether compensation and Islamic Corporate Governance (ICG) are related to employees’ fraud tendency and whether religiosity changes these relationships. Methods: A cross-sectional questionnaire survey of 78 employees from BMTs affiliated with PBMTI MPD Semarang City was analysed using partial least squares structural equation modelling in SmartPLS 3.0. Results: Higher compensation and stronger ICG were associated with lower fraud tendency. Religiosity significantly interacted with compensation, but its interaction with ICG was not statistically significant. Conclusion: Fraud-risk management in BMTs should combine fair and transparent remuneration with sharia-oriented governance; individual religiosity may reinforce the compensation-related association.

Source: Journal of Business Social and Technology

DOI: 10.59261/jbt.v7i4.752

Authors: Rifka Fitriyani Ainurriza, Muchlis Yahya, Joko Prasetiyo

Institutions: Walisongo State Islamic University, Diponegoro University

Topic: Islamic Finance and Banking Studies

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W7202350737

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