Corruption and National Competitiveness in Different Stages of Country Development

Ulman, Simona-Roxana

doi:10.1016/s2212-5671(13)00127-5

Cited by 22 publications

(14 citation statements)

References 16 publications

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“…The correlational analysis, however, indicated that with the exception of voice and accountability, the competitiveness index showed a significant positive correlation with all other explanatory variables. This confirms the works of Podobnik et al (2012) and Ulman (2013).…”

Section: Discussion Of Findingssupporting

confidence: 91%

World Governance Indicators and Fraud: Evidence from One Belt One Road Countries

Kwadwo

Kong

Musah

et al. 2021

The Economics and Finance Letters

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This paper investigates the effect of worldwide governance indicators and global competitiveness on the level of accounting fraud in One Belt One Road (OBOR) countries. We use publicly available data from various sources. We perform principal components analysis to reduce the six governance indicators to three governance indexes. Governance indicators have significant impact on fraud and the effect could be positive or negative depending on the dimensions involved. Voice and accountability and political stability show significant negative impact on the number of fraud cases. Competitiveness shows a positive but insignificant effect on the level of fraud cases. Democratic countries report lesser number of fraud cases. The findings should be read with caution because of the diversity in the countries in the sample. OBOR countries exhibit different governance models, which may affect their indicators and as a result, the extent of fraud cases reported may be influenced by the regime practiced by a country. The study considers the relevance of governance indicators to policymakers in dealing with rising level of fraud since fraudulent activities affect productivity. Fraud analysis should be embedded in the governance architecture of countries to stimulate development and mitigate the risks of bankruptcies, business failures and loss of investments. Contribution/Originality:The paper contributes to literature on fraud and forensic accounting theories by employing the institutional framework to highlight the occurrence of fraud in different settings. INTRODUCTIONIn recent times, forensic accounting, which focuses on fraud examination, investigation of bribery and corruption, business valuation, expert witness, cybercrime management/cyber security and litigation support (Crumbley, Heitger, & Smith, 2015) has emerged as a multi-faceted area. Concerns about the increasing rate of frauds the world over has led to a rise in the demand for forensic accounting (Rezaee & Wang, 2018). According to the 2018 Global Survey on occupational fraud and abuse, Report to the Nations issued by the Association of Certified Fraud Examiners (ACFE), organizations lose around 5 percent of their total revenues to fraud each year.Applied to the 2017 estimated Gross World Product of USD 79.6 trillion, organizations suffer global fraud loss close to the tune of USD4 trillion (ACFE, 2018). "Fraud is a human endeavor, involving deception, purposeful intent, intensity of desire, risk of apprehension, violation of trust, rationalization" (Ramamoorti & Olson, 2007).This study examines the influence of governance infrastructure and global competitiveness on accounting fraud.

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Section: Discussion Of Findingssupporting

confidence: 91%

World Governance Indicators and Fraud: Evidence from One Belt One Road Countries

Kwadwo

Kong

Musah

et al. 2021

The Economics and Finance Letters

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“…Obviously, the supplementary level of corruption strongly reduces a country's prospects for an improvement in its wealth [34]. Thus, the correlation between the inverse corruption and competitiveness indices is very strong, which means that a high level of corruption has a significant negative impact on national competitiveness [35]. Assuming that there is a valid relationship between the competitiveness and economic growth of a given country, we can also claim that an increased level of these two factors positively influences the reported fraud cases.…”

Section: Resultsmentioning

confidence: 99%

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

et al. 2018

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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.

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“…Having influence on the organization of general and university schooling, the state shapes the quality and level of education, e.g., [149,150], as well as dimensions and attributes of social capital. According to global research, a low level of social capital is prone to produce corruption and nepotism at the meeting point of power and business, which also leads to a deficit in morality, low levels of trust to state organizations, and depreciation of other social capital attributes [117,151]. Thus, the last authors draw the following research conclusion: "( .…”

Section: Gap In the Quality Of Institutional Factors And Human Capital Between Eu Statesmentioning

confidence: 99%

Success Factors of Startups in the EU—A Comparative Study

Skawińska

Zalewski

2020

Sustainability

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The paper focuses on key success factors of startups in the European Union. Startup companies have a massive potential to boost the level of innovation and competitiveness of national economies. They are also uniquely equipped to provide extremely effective and flexible ways of meeting both existing and emerging market needs. However, the development of these microventures differs from country to country. Hence, we put forth a hypothesis that strategic success factors in the development of startups vary in highly developed and catching-up countries. Our main goal was to determine the key success factors of startups in the EU, and to classify the gap between developed and lagging Member States. For this purpose, we applied the method of component analysis on startup data available for selected the EU states. We managed to isolate 5 components explaining 72% of data variability, all of which can be linked to human capital as well as to formal and informal economic institutions. The results confirmed the validity of our hypothesis. We established that more developed countries offer an institutional competitive advantage to startups, while the gap in success factors between highly developed and catching-up countries can be attributed to human capital and to institutions. Based on our findings, we offer suggestions how to reduce this gap by improving formal and informal institutions via innovative public policy and by supporting education.

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Corruption and National Competitiveness in Different Stages of Country Development

Cited by 22 publications

References 16 publications

World Governance Indicators and Fraud: Evidence from One Belt One Road Countries

World Governance Indicators and Fraud: Evidence from One Belt One Road Countries

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

Success Factors of Startups in the EU—A Comparative Study

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