How Does the Good Corporate Governance Prevent the Internal Fraud in Banks?

摘要

The purpose of this study is to examine whether banking governance in Indonesia could have a role in reducing the number of internal fraud in banks. The data in this study used the 2014-2017 banking report with a sample of 211 banks. Hypothesis testing techniques are carried out using multiple regression analysis. The dependent variable in this study is the number of internal fraud in banks, while the independent variables are the banking governance score and the level of complexity. This study also added a control variable that is the type of banking ownership. The results showed that banking governance and type of ownership did not show any effect, whereas the level of complexity showed positive effect results. These shows that the higher the level of banking complexity, the higher the possibility of internal fraud in banks.