Good Governance within Public Participation and National Audit for Reducing Corruption

Abstract

The globalization process and acceptance of a new paradigm for world development aimed at attaining sustainable development require extending the concept of good governance, which allows the improvement of institutional quality. At the same time, governance performance depends on corruption and public participation in national audits. The paper aimed to analyze the impact of public participation in national audits on corruption governance. The object of investigation was 30 Chinese provinces for 2008–2017. The study applied a regression model with the preventive, exposed, and defensive functions of audits. The findings showed that the “governance view” of the audit is the root cause of the audit. In addition, the “immune system” function of national audits has an inhibitory effect on corruption, among which the deterrent effect of the defense function is the most-influential. The influence of public participation in national audits on corruption governance is mainly reflected in the deterrence and resistance function of national audits. The paper contributes to audit theory by incorporating the public participation mechanism, improving the governance path of “national audit—public participation—corruption governance”. It allows improving the national audit “immune system” function by considering the democratic connotation of decision-making and developing a good governance environment.

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