IPSAS adoption, public governance and corruption perception in MENA and sub-Saharan Africa countries

Abstract

Purpose

This study aims to provide insights into the possible impact of International Public Sector Accounting Standards (IPSAS) on public governance and perceived levels of corruption in developing countries.

Design/methodology/approach

Through a multivariate analysis on panel data applied to 36 countries in the Middle East and North Africa (MENA) region and sub-Saharan Africa over the period 2010–2020, the authors test the impact of IPSAS adoption on transparency, accountability and perceptions of less corruption. The authors examine the moderating role of transparency and accountability in the strength of the relationship between IPSAS and perceived corruption.

Findings

The main results show that IPSAS adoption promotes an increase in transparency and accountability and leads to the perception of less corruption. Additional tests show that transparency and accountability strengthen the effect of IPSAS adoption and experience on perceived corruption.

Research limitations/implications

The first limitation may be the use of the Transparency International CPI to measure the level of perceived corruption. Probably, the CPI does not reflect the actual levels of corruption in countries while the literature argues that these two measures are related. Also, the lack of data on the status and level of adoption of IPSAS by governments may be one limitation of the sample.

Practical implications

The study may help public authorities in their decision to adopt IPSAS. In light of the findings, standard-setting bodies could be encouraged to strengthen the disclosure requirements of IPSAS that make governments more transparent and accountable to limit perceptions of corruption.

Social implications

This study may also help citizens understand the benefits of such reforms in protecting public assets and how such standards may help improve social welfare.

Originality/value

To the best of the authors’ knowledge, this is one of the few studies that examines the impact of IPSAS on good governance by combining the dimensions of transparency, accountability and perceptions of corruption in DCs. It also provides insights into the moderating role of public governance pillars. Finally, it includes the IPSAS experience of the country, which has been little tested previously.

Citation

Ben Slama, F. and Jandoubi, M. (2024), "IPSAS adoption, public governance and corruption perception in MENA and sub-Saharan Africa countries", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-12-2023-0773