Performance, Remuneration, Fraud Tendency, and Student Satisfaction: The Case of Lecturers in Higher Education

This research aimed to determine the factors influencing remuneration paid to the lecturers and their effect on the tendency of lecturers to conduct fraud. Moreover, the research also aimed to examine the association between the lecturers’ fraud tendency and student satisfaction. The research was conducted on 42 lecturers in higher education in Central Java to achieve this aim. Data was collected through documentation on the remuneration reports in the chosen higher education. The data was then analyzed using the Structural Equation Model through Partial Least Squares. The research provided evidence that 8 items of lecturer performance were valid and reliable and can be used as bases to measure remuneration payment, including teaching load, learning and development, additional education elements, research publication, other research elements, community service, organizational contribution, and accreditation status. In addition, the research provided significant results that lecturer performance positively affected remuneration and fraud tendencies. However, this research failed to prove that remuneration negatively affected fraud tendency, and therefore, it also failed to provide evidence that remuneration mediated lecturer performance and fraud tendency. Another significant result derived from this research was the fact that fraud tendency was not associated with student satisfaction.