Strengthening the fight: is the adoption of IPSAS helping Latin America tackling corruption?
Journal of Public Budgeting, Accounting & Financial Management
ISSN: 1096-3367
Article publication date: 17 October 2024
Abstract
Purpose
This paper examines the relationship between the adoption of accrual-based IPSAS and the level of perceived corruption of Latin-American countries, considering the moderating effect of the country’s institutional quality.
Design/methodology/approach
The study adopted a longitudinal analysis of 19 countries, between 2010 and 2020, following a quantitative approach by using multiple linear regression with panel data.
Findings
Main findings indicate that the harmonization of public sector accounting through the adoption of IPSAS generates a positive effect on the corruption level in Latin-American countries, causing a reduction in their indexes of perception of corruption. The countries’ institutional context, as hypothesized, increases such effect, making it even more significant in the cases of partial adoption.
Practical implications
To improve accountability and decision-making in public sector entities overall, contributing to reduce corruption, IPSAS adoption requires an institutional environment favorable to take the best of their benefits.
Social implications
The adoption of IPSAS in an environment with a high institutional quality, allows a greater effect in reducing corruption in the jurisdiction.
Originality/value
This study contributes by providing a comprehensive view of IPSAS and its impact on perceived corruption levels, expanding the existing research to Latin America, where corruption is generally high and IPSAS may contribute to reduce it. It makes an important addition by defining and considering an index of the country’s institutional quality, providing evidence that when this is high, the context enhances the work of institutions, including IPSAS, to fight corruption.
Keywords
Acknowledgements
Funding information – This study was financed in part by the Coordenação de Aperfeiçoamento de Pessoal de Nível Superior – Brasil (CAPES) – Finance Code 001. Also partially conducted at the CeBER’s research is funded by national funds through FCT – Fundação para a Ciência e a Tecnologia, I.P., Project UIDB/05037/2020.
Citation
Lira, A.R.d., Chagas Cruz, M.R. and Jorge, S. (2024), "Strengthening the fight: is the adoption of IPSAS helping Latin America tackling corruption?", Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JPBAFM-07-2023-0131
Publisher
:Emerald Publishing Limited
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