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

Rifka Fitriyani Ainurriza (UIN Walisongo Semarang)
Muchlis Yahya (UIN Walisongo Semarang)
Joko Prasetiyo (Universitas Diponegoro)

Journal of Business, Social and Technology
Vol. 7 No. 4 (2026): Journal of Business, Social and Technology

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.