Corporate accounting scandals and their influence on governance and organizational performance

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Abstract

This study investigates the influence of corporate accounting scandals on the organizational performance of parastatals, with a specific focus on Zimbabwean entities. Previous literature indicates that such scandals erode public trust and confidence, leading to detrimental effects on financial performance (Namfukwe, 2024). The research employed a quantitative approach to analyze the extent of financial damage caused by these scandals. Findings revealed that accounting scandals significantly decreased the financial performance of parastatals in Zimbabwe, primarily due to factors such as weak corporate governance, inadequate internal controls, a lack of public awareness, poor financial management practices, and a lax regulatory environment. The study concludes that addressing these issues is critical for restoring trust and enhancing financial stability. To mitigate the effects of accounting scandals, the paper recommends improved corporate governance, strengthened internal controls, increased public awareness, sound financial management practices, and a more robust regulatory framework. This research is relevant as it provides actionable insights for policymakers and organizational leaders to enhance the integrity and performance of parastatals, thus contributing to the broader discourse on corporate governance (Shamsher & Zulkarnain, 2021).

Keywords: Corporate Accounting Scandals, Organizational Performance, Financial Management, Parastatals, Corporate Governance

Authors’ individual contribution: Conceptualization — N.W. and N.M.; Methodology — N.W. and N.M.; Software — N.W. and N.M.; Validation — N.W. and N.M.; Formal Analysis — N.W. and N.M.; Investigation — N.W. and N.M.; Resources — N.W. and N.M.; Data Curation — N.W. and N.M.; Writing — Original Draft — N.W. and N.M.; Writing — Review & Editing — N.W. and N.M.; Visualization — N.W. and N.M.; Supervision — N.W. and N.M.; Project Administration — N.W. and N.M.; Funding Acquisition — N.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G1, G3, G4

Received: 29.11.2024
Revised: 13.03.2025; 07.10.2025
Accepted: 21.10.2025
Published online: 24.10.2025

How to cite this paper: Wadesango, N., & Mpofu, N. (2025). Corporate accounting scandals and their influence on governance and organizational performance. Journal of Governance & Regulation, 14(4), 166–175. https://doi.org/10.22495/jgrv14i4art16