An Investigation of the Influence of the Worldwide Governance and Competitiveness on Accounting Fraud Cases: A Cross-Country Perspective

Abstract

This article examines how worldwide governance, global competiveness, and other institutional determinants have influenced the number of accounting fraud cases in several countries. The researchers have focused more closely on the importance of 'good governance' as one of the indicators of development objectives in itself. The institutional perspective is employed to explain the complexity of frauds in different societies which can be compatible for the purposes of international judgments in order to increase the effectiveness of previous forensic accounting theories. In this paper, a linear regression model is tested where governance, competitiveness, and other institutional variables are associated with a measure of accounting fraud cases. From our results, we can merely claim that an increased level of controlled corruption and political stability might reduce the number of fraud cases in various countries, while more effective and independent governance services with a higher freedom of expression seemed to increase them. The existence of accounting crimes also appeared to be a suitable proxy of better competitiveness. Anglo-Saxon countries have more stated fraud cases than other countries, attributed, perhaps, to the finest commercial courts with the most professional and least corrupt judges in the world, with centuries of precedent cases and experience in dealing with fraud. Moreover, we believe that a better understanding of fraud detection is a potentially important element in forensic accounting analytics in the success of governance policies to enhance development and reduce the risk of bankruptcies related to the reported fraud cases of enterprises.

Possibility of Company Goodwill Valuation: Verification in Slovak and Czech Republic

“…Important findings and connections are provided by many other authors, e.g. Boyarko (2011), Cavalinhos andCarreira (2015), Cygler andSroka (2017), D´Amico et al, (2014), Da Silva et al (2015), Fanelli and Ryden (2018), Hyuna (2017), Ionescu (2017), Mazzola and Gerace (2015), Maleki (2010), Nica et al (2017), Reimsbach (2013), Sadaf et al (2018). The recency of this issue in Slovak and Czech research is proven by authors, e.g.…”

“…Considering the review of scientific literature, we can state that it is the company goodwill, which creates the difference between the market value of company and the book value of company. Subsequently, the value of the residual income should be equal to the company goodwill, in accordance with (Fernandez, 2002;Longhofer, 2005;Fanelli and Ryden, 2018;Sadaf et al, 2018).…”

“…Recency of this issue is proven by an amount of current papers, e.g. Kariuki et al (2013), Skogsvik and Juettner-Nauroth (2013), Reilly (2015), Tsai (2012Tsai ( , 2016, Kimbro and Xu (2016), , Sadaf et al (2018).…”

The Usefulness of Accounting Information Derived by Applying the Percentage of Completion Method to Enhance Sustainable Business Practices: Evidence from South Korea

“…A better understanding of fraud detection is a potentially important element in forensic accounting analytics for the success of governance policies to enhance development and reduce the risk of bankruptcies related to the reported fraud cases of enterprises. Hence, in this international approach, further research could be fruitful and significant in the future [24].…”

Design of a CRM Level and Performance Measurement Model

“…There is not only an increase in supply that largely exceeds demand, but also globalization of the competitive environment [1,2]. Each business entity is more or less influenced by its surroundings and, therefore, it is very important to be distinguished from others by not only focusing on product quality but also on the quality of customer relationship.…”