Nexus between financial accountability or transparency and corruption in parastatals in Zimbabwe

Financial accountability and corruption

  • Newman Wadesango University of Limpopo
  • Tinotenda Nhubu Midlands State University
Keywords: Financial accountability, corruption, internal auditors, budget

Abstract

The purpose of this research was to investigate the relationship between financial accountability or transparency and corruption in parastatals using one parastatal. The research objectives outlined the quality of financial reporting, audit and budget and budgetary control. The descriptive survey research design, regression analysis was used and data was gathered through questionnaires. A total population of 24 employees including top management, accountants, auditors, HR and IT was sampled using convenience and purposive sampling. Research instruments considered for the purposes of this research are questionnaires which had 77% response rate. The data gathered was presented through bar graphs, pie charts and tables. The data accumulated was analyzed using regression analysis as a statistical method and conclusions were drawn from this. After the analysis it was revealed that financial accountability or transparency have a significant effect on corruption. The recommendations passed by the researchers included more training and experience for internal auditors and accountants. The researchers also recommended that G.M.B should take matters seriously against people who engage in corrupt activities instead of transferring them to different departments.

References

Apuke, O. D., (2017) Quantitaive Research Methods a synopsis Approah, Arabian Journal Business Management Review, Vol 6.
Assakaf, E. A., Samsudin, R. S. and Othman, Z. (2018) Public Sector Auditing and Corruption: A literature Review, Asia Journal of Finance and Accounting, Vol.10. No.1, pp 122-132.
Association of Certified Fraud Examiners (2012) Fraud examiners manual, Austin TX: The Association of Certified Fraud Examiners.
Beest, V., Braam, G. and Boelens, S. (2009) The quality of Financial Reporting: Measuring qualitative characteristics, Working paper, Nijmegen Center for Economics (NICE) Instistute for Management Research Radboud University Nijmegen.
Bhattacheejee, A. (2012) Social Science Research Principles Methods and Practices, 2nd edition, Creative Commons attribution-noncommercial-share alike.
Boquist, V. (2010) “Performance –Based Accountability” in Shah A “Performance Accountability and Combating Corruption, Journal in Management, Vol.7. No.4, pp 42-44.
Brusca, I., Rossi, F. M., Aversano, N. (2018) Accountability and Transparency to fight against Corruption: An International Comparative Analysis, Journal and Comparative Policy Analysis, Vol.20. No.5, pp 486-504.
Chen, C. and Neshkova, M. I. (2019) The effect of fiscal transparency on corrupt: A panel cross-country analysis, Department of Public Policy and Administration Florida international University Miami USA.
Compoeru, M. V. and Compoeru, V. (2015) Budgeting Transparency an improving Factor for Corruption Control and Economic performance, 22nd International Economic Conference- IECS 2015 “Economic Prospects in the Context of Growing Global and Regional Interdependencies”, IECS 2015 pp 579-586.
Cooper, K. and Fargher, I. (2011) Accounting for corruption: Abuse of rank and privilege: Critical Perspectives on Accounting conference. Available at https://ro.uow.edu.au/commpapers/2159
Cooper, R and Schinder, P., (2014) Research Methods sixth edition, Boston: McGraw-Hill.
Corruption Control and Economic performance, 22nd International Economic Conference- IECS 2015 “Economic Prospects in the Context of Growing Global and Regional Interdependencies”, IECS 2015 pp 579-586.
Creswell, J. W., (2013) Research Design Qualitative, Quantitative and Mixed Method Approaches, Washington D.C: Sage Publications Inc.
Department of International Development, Why Corruption matters: Understanding causes, effects and how to address them. Evidence paper on corruption January 2015.
Drake, E. and Fabozzi, P. (2010) Task Uncertainty and Interaction with Budgeting Participation and Budget Emphasis: Some Methodological Issues and Empirical Investigation Accounting, Organisation and Society Review, Vol.6. No.8, pp 693-703.
Donald, D. L., (2014) Introduction to Research and Education, 5th edition, California: John Wiley and Sons Inc.
Erasmus, I. (2016) Impact of New System of Public Sector Budgeting on Financial Accountability, A technique and Strategy for the Development of Nigeria’s Economy, International Journal of Economic and Development Issues, Vol.7. No.5. pp38-39.
Ghaffoori, A. (2016) The role of Accounting Reform in Deterring Corruption Practices in the Public Sector: A case study in Kudiston Region, Vol 5 No.4.
Gjinovci, A. (2016) Impact of nepotism and corruption on the economy and Economic and Environmental Studies, Vol 16 No 3, pp 421 – 434.
Houqe, M. N. and Monem, R. (2013) Corruption, political institutions and accounting environment: A cross country study. Paper presented at 2013 annual International Journal of Accounting Symposium, Wuhan P.R China.
Ibrahim, M., (2015) The Art of Data Analysis, Journal of Allied Health Sciences, Parkistan, Vol 1, pp 98-94.
Jeppesen, K. K. (2018) The role of auditing in the fight against corruption, The British Accounting Review.
Johnson, J. (2014) Corruption and stabilization: Aid Agencies Anti-Corruption Strategies in Fragile States. Unpublished Cambridge: University of Cambridge.
Kaaya, I. D. (2015) The impact of International Financial Reporting Standards (IFRS) in earnings management: A review of empirical evidence, Journal of Finance Accounting, Vol.3. No.3, pp 57-65.
Kaseem, R. and Higson, A. W. (2016) External auditors and corporate corruption: Implications for external audit regulators, American Accounting Association, Vol.10, No.1, pp 1-10.
Kaufmann, D. (2011) Myths and Realities of Governance and Corruption. Available at https://www.worldbank.org/wbi/governance/pdf/2-1GovernanceandCorruptionKaufmann.pdf
Kumar, R. (2011) Research Methodology: A step by step guide for beginners, Washington DC: Sage.
Kythreotis, A. (2015) The interrelation among faithful representation, reliability, corruption and IFRS adoption: An empirical investigation, International Journal of Business and Economic Applied Research, Vol.8. No.1, pp 25-49.
Langen (2014) Research Design and Methodology, New Jersey: Prentice Hill
Majid, U. et.al (2018) Research Fundamentals, Study Design, Population and Sample Size, Undergraduate Research and Clinical Science and Technology Journal, Vol 2 No. 4
Makina, C. and Moyo, D. (2016) Public Financial Accountability: A prerequisite to the management of development assistance in Mozambique beyond 2015.
Malagueno, M. et al. Accounting and Corruption: A cross country Analysis, Journal of Money Laundering Central.
Malena, C. and McNeil, M. (eds) (2010) Demanding good governance lessons from social accountability initiatives in Africa, Social Accountability in Africa, Washington DC: World Bank.
Marquette, H.; Peiffer, C. (2014) Corruption and Collective Action: Shifting the Equilibrium? Research Paper No. 32. Birmingham: Developmental Leadership Program, University of Birmingham.
Mc-Grawth, U. C., (2011) Research Methods for business students, New York: McGraw Hill.
Milne, J., (2012) Questionnaires: some advantages and disadvantages, Aberdeen: University of Aberdeen.
Mohajan, H. K., (2017) Two criteria of good measurements in research. Validity and Reliability.
Molin-Arizon, F. M., (2016) Mixed Methods Research: An opportunity to improve our studies and our research skills, European Journal of Management and Business Economics, pp37-38.
Mwita, R. M et al. (2019) The role of Financial accounting information transparency in combating corruption in Tanzanian Saccos, African Journal of Applied Research, Vol.5. No.1.
Neuman, W., (2012) Basics of Social Research, 3rd edition, Boston: Pearson.
Nyoni, T. (2017) The curse of corruption in Zimbabwe, International Journal of Advanced Research and Publications, Vol 1
Okpala, K. E. and Osanebi, C (2019) Financial Accountability and National Development Analysis of Role and Effect, Journal of Accounting, Lagos Mailand and District Society of the Institute of Chartered Accountants of Nigeria, Vol.15. No.1, pp 51-61.
Oshodin, E, and Bakare, I (2019) IFRS adoption, Corruption and Quality of Financial Reporting: A review of Literature, Available at https://www.uniben.edu. Accessed on 5 March 2020.
Otalor, J. I. and Eiya, O. (2013) Combating corruption in Nigeria: The role of public sector auditor. Research Journal of Finance and Accounting, Vol.4. No.4, pp 122-132.
Persson, A.; Rothstein, B.; Teorell, J. Why Anticorruption Reforms Fail – Systemic Corruption as a Collective Action Problem. Governance 26(3): 449-471. 2013.
Potter, W. J. (2013) An Analysis of Thinking and Research About Qualitative Methods, New York: Routledge Press.
Rahi, S., (2017) Research Design and Methods: A systematic Review of Research Paradigms, Sampling issues and Instruments Development, International Journal of Economics and Management Science.
Reinikka, R. and Svesson, J., (2011) The power of information in public services: Evidence from education in Uganda, Journal of Public Economics, pp 956-966.
Sarem, H. and Mohammadi, S. (2015) The relationship between Transparency and Accountability in Public Accounting, Research Journal of Finance and Accounting, Vol.6. No.9.
Silva, C., (2017) Research Design- The New Perceptive of Research Methodology, British Journal and Education Society and Behavioral Science.
Sumah, S. (2018) Corruption, Causes and Consequences, Trade and Global Market. Available at https://dx.Doi.org/10.5772/intechopen.72953. Accessed of 03 March 2020.
Transparency International (2015), Corruption Perception Index, Available at https://cpi.transparency.org/cpi2012/results. Accessed on 20 February 2020.
Trigueros, D. R. and Sandoval, J. F. H., (2017) Qualitative and Quantitative Research Instruments, University of Salvador.
Walliman, N., (2011) Research Methods the basics, New York: Taylor and Francis Group.
Wegner, T. E., (2013) Strategic Business Management, New York: John Wiley and Sons Inc.
Wyk, B. (2012) Research Design and Methods, Capetown: University of Western Cape.
Zohrabi, M. (2013) Mixed Method Research: Instruments, Validity, Reliability and Reporting Findings, Theory and Practice in Language Studies, Vol.3, pp 254-262.
Published
2021-09-27
Section
Articles