Digital Governance and Data Security: The Impact of IT Governance Maturity on Compliance, Fraud Prevention, and Investor Confidence
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Abstract
This study assesses the influence of IT governance maturity
(ITGM) on compliance (COMPLY), fraud prevention (FRAUDP),
and investor trust in data-intensive public companies across
sectors. Using a firm-year panel design (±2019–2025), we construct
an ITGM index based on auditable documentary evidence
(structure & roles, policies & controls, risk management,
compliance & audit, incident resilience, culture & training) and two
mediator constructs—COMPLY and FRAUDP. Investor trust is
proxied using cost of equity (COE), bid–ask spread, Tobin's Q/PBV,
and analyst coverage. The relationships are tested through fixedeffects
panel regression (firm & year), mediation tests
(bootstrap/SEM), and moderation by critical data intensity (CDI),
with robustness tests (alternative proxies, index redefinition,
winsorizing). The results show that ITGM has a positive effect on
COMPLY and FRAUDP, and both reduce COE and increase
valuation (Q/PBV)—confirming the dual mediation mechanism from
IT governance to investor confidence. Furthermore, the effect of
ITGM is stronger in firms with high CDI, underscoring the
importance of data materiality. The findings remain consistent
across robust specifications. The study's contributions include the
integration of comprehensive and auditable maturity measures, the
exploration of dual mediation paths that explain value channels,
and the examination of materiality moderation to enhance the
relevance of policies and practices. Practical implications
recommend strengthening IT governance structures, implementing
measurable controls, and transparent, metrics-based disclosures
to build sustainable market confidence.
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Digital Governance and Data Security: The Impact of IT Governance Maturity on Compliance,
Fraud Prevention, and Investor Confidence – Rian Sucipto
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