Impact of Country Governance and Financial Development on Corporate Fraud Cases: A Cross Country Perspective

Muhammad Subhan, Tofail Ahmed, Wali Ullah, Dr. Hamid Ullah and Dr. Shahid Jan
Additional contact information
Muhammad Subhan: Islamia College University Peshawar, Department Management Sciences, Pakistan
Tofail Ahmed: Islamia College University Peshawar, Department Management Sciences, Pakistan
Wali Ullah: Islamia College University Peshawar, Department Management Sciences, Pakistan
Dr. Hamid Ullah: Assistant professor, Islamia College University Peshawar, Department Management Sciences, Pakistan
Dr. Shahid Jan: Associate Professor, Islamia college university Peshawar, department management sciences, Pakistan

Bulletin of Business and Economics (BBE), 2024, vol. 13, issue 2, 487-504

Abstract: This study aims to examine the impact of country governance and financial development on corporate fraud cases across countries' perspectives from the year 2012-2018 by using country- wise data. This study runs different statistical models like descriptive, correlations, Random effect model, fixed effect model. This study chooses a fixed effect model based on the Hausman test and used Quantile regression for robustness and interquartile 0.25 to 0.75 difference regression models to find out the difference that the effect of variables are significant or insignificant at different quartile. The results of the different models show that country governance having a significant impact on corporate fraud cases and the association is negative thus improvement in country governance would expectedly reduce the corporate fraud cases. while financial development in terms of the financial market has a significant impact on corporate fraud cases and association is positive thus the development of a financial market where different financial products and instruments with less knowledge have the probability to be easily used for fraud. whereas financial development in terms of financial institutions having a significant effect on corporate fraud cases and the relationship is negative thus improvement in financial institutions like the security exchange commission of Pakistan and state bank would certainly minimize the corporate fraud cases.

Keywords: Country governance; Financial development; Corporate fraud cases; Fixed effect model; Quantile Regression (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://bbejournal.com/BBE/article/view/869/874 (application/pdf)
https://bbejournal.com/BBE/article/view/869 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rfh:bbejor:v:13:y:2024:i:2:p:487-504

DOI: 10.61506/01.00359

Access Statistics for this article

Bulletin of Business and Economics (BBE) is currently edited by Dr. Muhammad Irfan Chani

More articles in Bulletin of Business and Economics (BBE) from Research Foundation for Humanity (RFH) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Irfan Chani ().