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The relationship between IPSAS adoption and perceived levels of corruption: Does political stability matter?
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Mounira Hamed-Sidhom 
, Nadia Loukil
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
The paper aims to examine the relationship between International Public Sector Accounting Standards (IPSAS) adoption and the perceived level of corruption in developing countries. It also attempts to inspect the mediating effect of political stability on this relationship. We follow the methodology used by the International Federation of Accountants (IFAC) to assess country adoption status and we apply a panel regression analysis to 57 developing countries over the 2016–2019 period. Our findings suggest that country’s decision to adopt IPSAS cannot shortly lead to a reduction of its corruption perceived level. In addition, we make evidence that the level of corruption does not matter on the relationship between the IPSAS adoption and the corruption perceived level. We find also that political stability, while decreases corruption, doesn’t contribute to enhance the effect of IPSAS adoption on the perceived corruption level. This paper provides insights into the role of IPSAS adoption to countries’ corruption levels. It will be of interest to accounting standard-setters, regulators, and policymakers in countries that are transitioning to or considering International Public Sector Accounting Standards. It will also be of interest to regulators and policymakers, multilateral institutions in their effort to fight corruption.
Keywords: IPSAS, Political Stability, Corruption, Developing Countries
Authors’ individual contribution: Conceptualization — M.H.-S.; Methodology — M.H.-S. and N.L.; Writing — M.H.-S. and N.L.; Investigation — M.H.-S. and N.L.; Resources — M.H.-S.
Declaration of conflicting interests: The Authors declare that there is no conflict of interest.
JEL Classification: H11, D73, M41, O12
Received: 17.11.2020
Accepted: 17.09.2021
Published online: 21.09.2021
How to cite this paper: Hamed-Sidhom, M., & Loukil, N. (2021). The relationship between IPSAS adoption and perceived levels of corruption: Does political stability matter? Corporate Ownership & Control, 19(1), 17–28. https://doi.org/10.22495/cocv19i1art2
