Dwi Ratmono

Corruption in government organizations is an important and relevant topic to study because of its impact on the state in terms of financial losses and a decrease in the quality of human development. This study is also relevant because previous analyses are still limited in their modeling and measuring comprehensive fiscal decentralization variables. This study aims to examine the effect of fiscal decentralization and quality of government on the level of corruption and the impact of corruption on the human development index. The sample of this paper comprises 113 local governments on the island of Java, Indonesia, for the period 2015–2018. Statistical testing was carried out using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The test results show that fiscal decentralization has a positive effect on corruption with a path coefficient of 0.100 and is significant at 5% alpha. Likewise, poor governance (proxied by internal control weaknesses) has a positive effect on the level of corruption with a coefficient of 0.062 and is significant at an alpha of 10%. The results of the PLS-SEM test also show that corruption has a negative impact on the human development index with a coefficient of –0.206 and is significant at 1% alpha. The practical significance of this study is the importance of the internal control system reliability as a complementary variable for fiscal decentralization to prevent corruption.

This study is relevant because it examines the determinants of corruption in local governments that have a negative impact on the success of sustainable development. This study aims to examine the effect of New Public Management (NPM), as measured by fiscal decentralization, financial reporting quality and independent audits, on the level of corruption. The sample consisted of 433 local governments in Indonesia based on data from 2011–2017. PLS-SEM was used as a data analysis technique. The results test shows that fiscal decentralization positively affects corruption with a path coefficient of 0.19 and a p-value of 0.004. The quality of financial reporting has a negative effect on the level of corruption with a coefficient of –0.26 and a p-value < 0.001. Hypotheses testing results also show that audit finding positively affects corruption with a coefficient of 0.10 and a p-value < 0.10. On the other hand, follow-up audit results have no significant effect on corruption with a p-value > 0.10. This study concludes that the NPM mechanism in the form of fiscal decentralization positively affects corruption. These results imply that fiscal decentralization needs to be balanced with good governance, among others, by increasing the quality of financial reports and independent audits.

The problems of pollution, global warming, and environmental damage are currently relevant and vital challenges for corporations, governments, and society. The implementation of green accounting is one of the responses of corporations to overcome sustainability issues. This study aims to examine the impact of green accounting on the level of environmental performance and the impact of environmental performance on corporate social responsibility (CSR) disclosure. This study also tests the role of environmental performance as a mediating variable in the relationship between green accounting and CSR disclosure. The sample consists of 95 listed Indonesian firms during the period 2017–2021. The results show that the adoption of green accounting positively affects environmental performance (coefficient is 0.291 and p-value < 0.01). Meanwhile, environmental performance positively affects CSR disclosure with a coefficient of 0.296 and a p-value < 0.01. The empirical evidence also shows that environmental performance has a critical role as a mediating variable in the effect of green accounting on CSR disclosure.

The objective of this paper is to examine asset misappropriation fraud during the COVID-19 pandemic. The study examines the impact of four elements of fraud risk factors and Islamic religiosity on the propensity for fraud among employees who manage assets in government organizations. Data collection involved a questionnaire distributed to 210 employees responsible for asset management within the government organization in Indonesia. Partial least squares-structural equation modeling (PLS-SEM) was utilized as a statistical method. The test results show that the theoretical model is supported by empirical data. The study revealed that pressure, opportunity, rationalization, and capability positively influence asset misappropriation with a coefficient of 0.250, 0.134, 0.211, and 0.288, respectively. These results indicate that the higher the four fraud risks, the higher the possibility of asset misappropriation in the organization. On the other hand, Islamic religiosity exhibits a negative association with asset misappropriation with a coefficient of –0.113. These results indicate that religiosity plays an important role as a preventive factor in reducing the occurrence of asset misappropriation by employees. This study contributes to limited literature exploring factors influencing occupational fraud, specifically asset misappropriation during the COVID-19 crisis. The study recommends managerial strategies to mitigate asset misappropriation within the framework of the fraud diamond model.

Restaurant tax is a crucial source of funding for local government’s development activities. However, there is still very limited research that analyzes restaurant tax compliance in the context of today’s rapidly growing e-commerce. This paper is relevant because the growth of e-commerce-based restaurants in local governments in Indonesia contrasts with the decrease in tax revenues. This study aims to analyze the determinants of restaurant tax compliance using e-commerce and self-assessment systems as independent variables and technology-based tax monitoring as a moderating variable. The sample consists of 68 payers of restaurant tax in the city of Semarang, Indonesia, who have used e-commerce to transact their business. The testing of the hypotheses was carried out using partial least squares-structural equation modeling (PLS-SEM). The results show that the self-assessment system has a positive significant effect on tax compliance with a path coefficient of 0.31. Technology-based tax monitoring significantly affects tax compliance with a path coefficient of 0.52. Technology-based tax monitoring acts more as the main determinant rather than as a moderating variable. The study stresses the importance of implementing technology-based restaurant tax monitoring for local governments. Local finances, primarily funded by local taxes such as the restaurant tax, are essential for bolstering regional budgets. These funds directly contribute to public services and infrastructure, making restaurant tax compliance vital for local government autonomy and development.

Type of the article: Research Article

Abstract
This study aims to analyze the effect of government budget on tax compliance, with tax fairness and public trust as mediating variables. This study used a sample size of 200 respondents, based on the minimum sample size criteria for partial least squares (PLS-SEM), inverse square root, and gamma-exponential methods. To strengthen the robustness of results, a bootstrapping method with a subsample of 5,000 was used in hypothesis testing. The survey was conducted with 200 individual taxpayers. The results show that the government budget has a positive effect on tax compliance with a coefficient of 0.233. Tax fairness has a positive effect on tax compliance, with a coefficient of 0.573. The results show that government budget expenditure positively affects tax fairness and has a positive indirect effect on tax compliance through tax fairness at the 10% level. The results also show that the relationship between budget expenditure and public trust is negative and statistically significant (β = –0.170, p = 0.036). Government budget positively affects tax fairness and has a positive indirect effect on tax compliance through tax fairness, marginally significant at the 10% level. The IPMA analysis results indicate that tax fairness has the highest importance and performance, while the government budget ranks the lowest. The practical value of this research is that the government must implement a fair taxation system, as it is the primary determinant of tax compliance.

Type of the article: Research Article

Abstract
This study aims to analyze the relationship between management control systems and digital innovation in the Indonesian banking sector through the theory of levers of control (LOC). Unlike previous studies that often assume linear relationships and analyze LOC in aggregate, this study adopts a disaggregated approach and hybrid methods to provide a more comprehensive understanding. The methodology integrates partial least squares structural equation modeling (PLS-SEM) and artificial neural network (ANN) using data from 76 chief financial officers (CFOs) of commercial banks in Indonesia (response rate 77.55%). The PLS-SEM results showed that the belief system (β = 0.234), boundary system (β = 0.231), and interactive control system (β = 0.281) were positively related to digital innovation, with the interactive control system as the most consistent dimension, while the diagnostic control system did not show a significant linear relationship (p = 0.066). The ANN analysis complements these findings by showing that the interactive control system has the highest level of predictive importance, followed by the diagnostic control system, boundary system, and belief system. These findings suggest that PLS-SEM and ANN provide complementary insights, where PLS-SEM describes linear relationships based on theoretical models. In contrast, ANN describes the relative contribution of each predictor to the model’s predictive ability. Overall, interactive control systems are the most consistent LOC dimension related to digital innovation and illustrate the added value of a hybrid approach for a more comprehensive understanding of the role of management control systems in digital transformation in the banking sector.

Acknowledgments
The authors are supported by funding from the Indonesian Education Scholarship, the Center for Higher Education Funding and Assessment, the Ministry of Higher Education, Science, and Technology of the Republic of Indonesia, and the Endowment Fund for Education Agency, the Ministry of Finance of the Republic of Indonesia. This research was supported under the Award Number BPI: 202327092283.