Fraud Hexagon, Machiavellian, and Love of Money Determinants of Village Fund Mismanagement

Abstract

Village fund mismanagement represents a critical governance challenge requiring a comprehensive understanding of behavioral and structural fraud determinants. This research examines fraud hexagon elements (financial pressure, capability, opportunity, rationalization, arrogance, and collusion), Machiavellian traits, and the impact of love of money on village fund fraud in Bangko Pusako District, Rokan Hilir Regency. Employing quantitative methodology with census sampling, 152 village officials participated as respondents. Data analysis includes multiple linear regression with classical assumption tests utilizing SPSS version 26. Empirical findings reveal capability and love of money exert significant positive effects on fraud, while other variables demonstrate insignificant influences. Collectively, variables explain 20.1% fraud variance, with the remaining 79.9% influenced by unexamined factors, offering insights for fraud prevention strategies.