THE ROLE OF IT GOVERNANCE AS MULTIGROUP MODERATION IN THE RELATIONSHIP OF ORGANIZATIONAL DEMOGRAPHICS, EXTERNAL ENVIRONMENT CHARACTERISTICS, AND ORGANIZATIONAL CULTURE TO FRAUD

This study focuses on companies related to fraud and the purpose of this study is to reveal the causal relationship between the influence of exogenous variables, namely Organizational Demography, External Environmental Characteristics, Organizational Culture, and IT Governance as moderating variables to the endogenous variable, namely fraud, so this study uses explanatory research. The population of this study are companies that go public (offering business ownership to the general public) which are listed on the Indonesia Stock Exchange until 2020 and commit fraud in the company's financial reporting or within a certain period of time do not report financial statements, namely 216 companies. The sampling technique used in this study was purposive sampling with the determination of the sample size using the 5% slovin formula. This research uses Structural Equation Modeling (SEM) analysis with Partial Least Square (PLS) method. The result fo this study show that Organizational Demographics does not have a significant positive effect on Fraud; In IT Governance with a low category, External Environmental Characteristics does not have a significant effect in a positive direction on Fraud, but in high category, External Environmental Characteristics have a significant effect in a positive direction on Fraud; and Organizational Culture has a significant negative effect on Fraud. The originality of this research is the disclosure of the impact of the moderating variable of IT Governance on the influence of Organizational Demographics, External Environmental Characteristics, and Organizational Culture on Fraud. In this study, the moderating variable of IT Governance is a categorical variable which is divided into two groups, namely the low group and the high group.