Fraud risk management and performance of Indonesian waqf institutions: exploring the mediating role of good waqf governance

Purpose This study aims to examine the influence of fraud risk management (FRM) on the performance of waqf institutions (WP) in Indonesia and the mediating role of good waqf governance (GWG) in this relationship. Design/methodology/approach Using a survey, data were collected from 90 waqf Nazhir under the supervision of the Indonesian Waqf Board (BWI), an institution mandated by regulations to develop and oversee waqf management in Indonesia. The data were analyzed using structural equation modeling-partial least squares (SEM-PLS) via SmartPLS 4.0. Findings The study results demonstrate that FRM has a significant positive impact on WP, with GWG acting as a key mediator that reinforces this effect. Practical implications The findings offer practical guidance for waqf managers and regulators to strengthen governance structures and implement more effective FRM strategies. These improvements can enhance institutional accountability, stakeholder trust and overall performance of WP in Indonesia. Originality/value This study contributes to enhancing literacy and expanding the understanding of the relationship between FRM, GWG, and the WP through the perspectives of Sharia enterprise theory and institutional theory. Practically, waqf managers can use the findings to strengthen governance systems and risk management practices, thereby improving the WP in Indonesia.