BUDAYA NASIONAL, PERTUMBUHAN SOSIAL EKONOMI, DAN RISIKO KECURANGAN

Abstract

This study is aimed to obtain empirical evidence about the effect of national culture and socio-economic development to fraud risk. Understanding implication between national culture and fraud risk holds promise for mitigate fraud. The six Hofstede’s national cultures were used in this study. Socio-economic development was proxied by the Human Development Index, while the Corruption Perception Index was used as a proxy for fraud risk. The population in this study are countries in the world. The sample selection used a purposive sampling technique, so that 80 countries are selected. Data analysis in this study used descriptive statistical analysis, classic assumption test, goodness of fit test model, and multiple linear regression. The results of the analysis from the study showed that power distance, uncertainty avoidance, and masculinity had a significant and positive effect on the fraud risk. While indulgence and socio-economic development have a significant and negative influence on the fraud risk. Then, individualism and long-term orientation have negative influence, but not significant to fraud risk.