Next Article in Journal
Evaluation of Changes on World Stock Exchanges in Connection with the SARS-CoV-2 Pandemic. Survival Analysis Methods
Next Article in Special Issue
Bibliometric Analysis of the Literature on Measuring Techniques for Manipulating Financial Statements
Previous Article in Journal / Special Issue
Efficiency of Money Laundering Countermeasures: Case Studies from European Union Member States
Article

Economic and Non-Economic Variables Affecting Fraud in European Countries

1
Department of Finance, Université Paris 1 Panthéon-Sorbonne, 75231 Paris, France
2
IPAG Business School, France & Hyperion University, 030615 Bucharest, Romania
3
Department of Finance, Faculty of Economics and Business Administration, Babes-Bolyai University, 400591 Cluj-Napoca, Romania
*
Author to whom correspondence should be addressed.
Academic Editor: Montserrat Guillén
Risks 2021, 9(6), 119; https://doi.org/10.3390/risks9060119
Received: 26 April 2021 / Revised: 9 June 2021 / Accepted: 14 June 2021 / Published: 17 June 2021
(This article belongs to the Special Issue Economic and Financial Crimes)
Fraud is one of the most harmful phenomena, because it leads to collapse of organizations, causes economic downfall of countries, and destroys faith in a country’s capital markets. The impact of fraud is complex and has varying degrees depending on political and financial institutional structures of a country. In this paper, we investigate the combined effect of economic and non-economic variables on fraud using a sample of 41 developed, in transition, and developing European countries. The data cover the period July 2014–December 2020. Panel data techniques of pooled estimation and the dynamic panel data/generalized method of moments (DPD/GMM) is used, keeping in view the endogeneity perspective. Nevertheless, two-way impacts of fixed effect model estimation—cross-sectional and time-based (panel) effects (alternatively)—are used for analyzing the relationship among the given variables, based on Hausman specification test results. Empirical results of panel data extended REM and FEM approaches with country-specific cross-sectional effects showing that political stability, economic freedom, poverty, and GDP significantly affect fraud proliferation. Political stability is appraised to be the most scoring determinant of fraud incidence in a country. View Full-Text
Keywords: fraud; corruption; business operational risk; economic freedom; gross domestic product; political stability; poverty; type of governance; inflation; unemployment fraud; corruption; business operational risk; economic freedom; gross domestic product; political stability; poverty; type of governance; inflation; unemployment
MDPI and ACS Style

Ahmad, B.; Ciupac-Ulici, M.; Beju, D.-G. Economic and Non-Economic Variables Affecting Fraud in European Countries. Risks 2021, 9, 119. https://doi.org/10.3390/risks9060119

AMA Style

Ahmad B, Ciupac-Ulici M, Beju D-G. Economic and Non-Economic Variables Affecting Fraud in European Countries. Risks. 2021; 9(6):119. https://doi.org/10.3390/risks9060119

Chicago/Turabian Style

Ahmad, Bashir, Maria Ciupac-Ulici, and Daniela-Georgeta Beju. 2021. "Economic and Non-Economic Variables Affecting Fraud in European Countries" Risks 9, no. 6: 119. https://doi.org/10.3390/risks9060119

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop