Proceedings of The 5th International Conference on Research in Management and Economics
Impact of Regulatory and Institutional Quality on Accounting Fraud Incidence
Libor Závodný, David Procházka, Sarah Chehade, Adéla Mikyska
This paper examines the relationship between the regulatory and institutional quality and incidences of accounting fraud in the USA over the period 2000 – 2019. Regulatory and institutional quality has been at the centre of a long-lasting debate in the professional environment. Within the accounting profession, this debate comes to the forefront in relation to accounting fraud. The question remains to what extent do improvements in regulatory and institutional quality prevent accounting fraud. Utilizing multiple data sources and using generalized statistical methods, this study provides evidence that the regulatory and institutional platform alone is insufficient and even irrelevant in terms of accounting fraud prevention.
keywords: Regulation, Accounting Fraud, Creative Accounting.