Accounting Practices and Fiscal Decentralization's Impact on Corruption: A BRICS Perspective

Abstract

Abstract This study builds on the corruption strand literature so espoused in isolation on accounting practice and decentralization, as it recognizes the two variables in conjunction with other key economic indicators from the BRICS economy perspective. Data from the BRICS economies that spanning 2005 to 2018 were analyzed using the panel cointegration estimation technique. The study concluded that resilient accounting practices and decentralization under strong democracy are barriers to corruption in the BRICS countries. However, some prior conclusions attest that quality accounting practices and strong decentralization can facilitate corruption. Our findings elucidate the crucial relevance of improving both accounting practices and fiscal decentralization as feedback mechanisms in reducing corruption. BRICS economies should take advantage of the outcomes of this study by designing appropriate policies that consider strengthening both accounting practices and decentralization as barriers to corruption.