Perception of Prosocial Behavior in Accountability of Village Fund Management in Indonesia: the Moderating Role of Internal Control and Leadership

Abstract

Purpose: This paper will talk about how the village's money is handled and how to help other people. During this investigation, topics like accountability and leadership in managing village finances, as well as internal control, will be broken down and looked at in depth. An investigation was done in the Indonesian villages out in the countryside. Theoretical framework: the paper discusses hypotheses related to prosocial behavior which has an impact on accountability in village government in Indonesia with a moderating effect on internal control and leadership. Design/methodology/approach: Random selection was used to select Indonesian village officials who took part in this study. There are a total of 689 village officials who participated as respondents to this study. Findings: The results of this study show that prosocial behavior and accountability can be controlled by leadership traits and internal control mechanisms. According to what the researchers found, these factors need to be used to change the other types of responsibility variables. Internal control has a strong and negative effect on both helping others and being accountable for how village money is spent. On the other hand, leadership has a strong and positive effect on both of these criteria. Internal control also has a big and important effect on who is responsible for how village money is spent. Strong leadership can make a big difference in both of these areas. Research, Practical & Social implications: The implication is, by looking at the prosocial behavior that occurs within village officials, the government is expected to compile implementing regulations and policies as technical guidelines as a reference for improving internal control and also leadership so as to further increase accountability. Originality/value: This study is among the first to test empirically the full moderating effect of leadership and internal control on the relationship between prosocial behavior and accountability in managing village funds in Indonesia.