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Accounting and corruption: a cross‐country analysis

Malagueño, Ricardo and Albrecht, Chad and Ainge, Christopher and Stephens, Nate (2010) 'Accounting and corruption: a cross‐country analysis.' Journal of Money Laundering Control, 13 (4). pp. 372-393. ISSN 1368-5201

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Purpose – The purpose of this paper is to better understand the relationship between accounting and auditing quality and the perceived level of corruption. Design/methodology/approach – This relationship is studied by performing a cross-country analysis using public data to measure accounting quality, audit quality, and corruption. Findings – Consistent with our predictions, we find evidence that accounting and auditing quality are significantly related to the level of perceived corruption in a country. Research Limitations/implications –These findings suggest that countries with more transparent reporting have lower levels of perceived corruption and that the level of perceived corruption may be reduced in a country by improving accounting and auditing quality. Practical implications – The findings suggest that countries can reduce the level of perceived corruption by improving the transparency of financial reporting by improving accounting and auditing standards. Originality/value – While significant amounts of research has examined perceived corruption, this study is the first to address the impact of high quality accounting information on the level of perceived corruption. Keywords Corporate Governance, Comparative Accounting Systems and Practice, Auditing, International Regulations, Corruption, Business/Government interaction and relations; Paper Type Research Paper

Item Type: Article
Uncontrolled Keywords: Accounting systems, Auditing, Corporate governance, Corruption
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Social Sciences > Essex Business School
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 14 Nov 2011 09:42
Last Modified: 06 Jan 2022 14:34

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