THE CAUSES AND CONSEQUENCES OF CORRUPTION FOR FINANCIAL MANAGEMENT: A SYSTEMATIC REVIEW
DOI:
https://doi.org/10.37435/nbr.v7i2.132Keywords:
Corruption, Economic development, Grease the wheels hypothesis, Sand the wheels hypothesisAbstract
Purpose: Corruption is widely viewed as an obstacle to a country’s development. Therefore, many studies have investigated what causes corruption and how it affects economic growth. However, no systematic efforts have been made to understand the consequences of corruption in the field of financial management. This study analyzes contemporary research published in reputable journals to clarify the multifaceted nature of corruption's determinants and consequences for financial management. The analyses also highlight a broader range of mechanisms through which corruption impedes economic progress, including increased business costs, inefficient resource allocation, and weakened institutional trust.
Findings: The review identifies the contextual factors that exacerbate or attenuate corruption's impact on economic development. The study provides valuable insights for investors, corporate stakeholders, and public policymakers on the complex nature of corruption and its broader effects on financial variables.
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