The relationship between the organization of public sector accounting and the perception of corruption

Amra Gadžo, Renata Lučić and Alma Osmanović Đaković

EconStor Open Access Articles and Book Chapters, 2025, vol. 6, issue 1, 10-25

Abstract: The paper examines the impact of budgetary accounting organization on the perception of corruption in the public sector, focusing on three key independent variables: the financial reporting framework, the accounting basis, and the level of independence of state auditing. The Corruption Perceptions Index (CPI), which measures the perceived level of corruption in the public sector, is used as an indicator of the dependent variable. The study includes data from 89 countries. For statistical analysis, categorical independent variables were encoded using the one-hot encoding method. Statistical tests were applied to assess the correlation between the independent variables and the CPI. The results show variations in correlation depending on the combination of financial reporting factors, the regulatory framework, and the quality of state auditing. The obtained results of multiple linear regression indicate that the model has a statistically significant impact on the CPI (p = 0.0217) and explains 21% of its variability.

Keywords: public sector accounting; budgetary accounting organization; perception of corruption; public financial management reform (search for similar items in EconPapers)
JEL-codes: M40 M48 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:323978

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