IDEAS home Printed from https://ideas.repec.org/a/jfr/ijfr11/v10y2019i3p216-229.html
   My bibliography  Save this article

Factors That Might Lead to Corruption: A Case Study on Malaysian Government Agency

Author

Listed:
  • Sharifah Liyana Marissa Malik Syed Abdul
  • Haslinda Yusoff
  • Nafsiah Mohamed

Abstract

Corruption has hindered the effectiveness of customs administrations in many developing countries. In the 21st century, a new problem has arisen which is the rise of international terrorism. Usually, these criminal corruption activities will happen at the border points of a country. This is where the criminal operators offer bribes to the customs officials to allow them to smuggle illegal items into the country. This has posed a huge risk to both the internal and international securities of many countries. This paper seeks to investigate the factors that may influence corruption in organizational procedures that occur in Malaysia. Given the importance of government agency and its accountability, internal control and discretionary power, this paper focuses on these factors in the effort to combat corruption, increase moral awareness and narrow the opportunities for corrupt practices. Specifically, this study found that there are significant relationships between the level of accountability, internal control, discretionary power and the perception on corruption. The result also indicated that corruption flourishes in a situation where the accountability of agents to the principal is weak, when agents have low internal control and when the agents have great discretion.

Suggested Citation

  • Sharifah Liyana Marissa Malik Syed Abdul & Haslinda Yusoff & Nafsiah Mohamed, 2019. "Factors That Might Lead to Corruption: A Case Study on Malaysian Government Agency," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 216-229, May.
    • Handle: RePEc:jfr:ijfr11:v:10:y:2019:i:3:p:216-229
    DOI: 10.5430/ijfr.v10n3p216
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/15522/9627
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/15522
    Download Restriction: no
    File URL: https://libkey.io/10.5430/ijfr.v10n3p216?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kwami Ossadzifo Wonyra, 2018. "Impact of Telecommunications Market Liberalization on Labor Productivity in Economic Community of West African States," Journal of Social Economics Research, Conscientia Beam, vol. 5(2), pages 63-74.
    2. Kwami Ossadzifo Wonyra, 2018. "Impact of Telecommunications Market Liberalization on Labor Productivity in Economic Community of West African States," Journal of Social Economics Research, Conscientia Beam, vol. 5(2), pages 63-74.
    3. Somya Tyagi & Sikandar Siddiqui, 2017. "Yield Curve and Momentum Effects in Monthly U.S. Equity Returns: Some Nonparametric Evidence," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 4(2), pages 61-67.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    5. Rivka Wadmany & Orly Melamed, 2018. ""New Media in Education" MOOC: Improving Peer Assessments of Students’ Plans and their Innovativeness," Journal of Education and e-Learning Research, Asian Online Journal Publishing Group, vol. 5(2), pages 122-130.
    6. Rebecca I. Umaru & Danjuma A. Ombugus, 2017. "Determinants of Job Satisfaction of Colleges of Education Lecturers: A Study of Nasarawa State College of Education, Akwanga," Asian Business Research Journal, Sophia, vol. 2(1), pages 8-13.
    7. Rose-Ackerman, Susan, 1975. "The economics of corruption," Journal of Public Economics, Elsevier, vol. 4(2), pages 187-203, February.
    8. Rivka Wadmany & Orly Melamed, 2018. ""New Media in Education" MOOC: Improving Peer Assessments of Students’ Plans and their Innovativeness," Journal of Education and e-Learning Research, Asian Online Journal Publishing Group, vol. 5(2), pages 122-130.
    9. Rodney Taruvinga & Walter Gachira & Washington Chiwanza & Dingilizwe Jacob Nkomo, 2017. "Comparison of the Lee-Carter and Arch in Modelling and Forecasting Mortality in Zimbabwe," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(1), pages 11-22.
    10. Somya Tyagi & Sikandar Siddiqui, 2017. "Yield Curve and Momentum Effects in Monthly U.S. Equity Returns: Some Nonparametric Evidence," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 4(2), pages 61-67.
    11. Rodney Taruvinga & Walter Gachira & Washington Chiwanza & Dingilizwe Jacob Nkomo, 2017. "Comparison of the Lee-Carter and Arch in Modelling and Forecasting Mortality in Zimbabwe," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(1), pages 11-22, March.
    12. UNAAM, Akaninyene Okon & ADIM, Chidiebere Victor & ADUBASIM, Ernest Ikechukwu, 2018. "Employee Loyalty and Organizational Citizenship Behaviour in the Port Harcourt Area Command of the Nigeria Police Force," International Journal of Business, Economics and Management, Conscientia Beam, vol. 5(6), pages 135-145.
    13. Lambsdorff,Johann Graf, 2007. "The Institutional Economics of Corruption and Reform," Cambridge Books, Cambridge University Press, number 9780521872751.
    14. Cheng, Mei & Dhaliwal, Dan & Zhang, Yuan, 2013. "Does investment efficiency improve after the disclosure of material weaknesses in internal control over financial reporting?," Journal of Accounting and Economics, Elsevier, vol. 56(1), pages 1-18.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bo-Hung Chiou & Shen-Ho Chang, 2020. "Influence of Investment Efficiency by Managers and Accounting Conservatism on Idiosyncratic Risks to Investors," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(1), pages 1-8.
    2. Chen, Ruiyuan & El Ghoul, Sadok & Guedhami, Omrane & Wang, He, 2017. "Do state and foreign ownership affect investment efficiency? Evidence from privatizations," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 408-421.
    3. Asrori Asrori & Muhammad Ihlashul Amal & Atta Putra Harjanto, 2019. "Company Characteristics on the Corporate Social Reporting Index of Corporate Social and Environmental Disclosure in Indonesian Public Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 481-488.
    4. Ivanov, A. & Maslova, S., 2014. "Applying modelling in the process of anti-corruption expertise of legal regulation of public procurement," Working Papers 6382, Graduate School of Management, St. Petersburg State University.
    5. Sulaiman Sajilan & Muhammad Umar Islam & Mohsin Ali & Urooj Anwar, 2019. "The Determinants of FDI in OIC Countries," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 466-473, August.
    6. Amel Kouaib, 2022. "Corporate Sustainability Disclosure and Investment Efficiency: The Saudi Arabian Context," Sustainability, MDPI, vol. 14(21), pages 1-13, October.
    7. Kun Zhang & Yuanyuan Wang & Xuegang Cui & Hong Yue, 0. "Can the academic experience of senior leadership improve corporate internal control quality?," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-30.
    8. Heidi Quah & Janto Haman & Dharmendra Naidu, 2021. "The effect of stock liquidity on investment efficiency under financing constraints and asymmetric information: Evidence from the United States," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 2109-2150, April.
    9. Dongyoung Lee, 2017. "Corporate Social Responsibility and Management Forecast Accuracy," Journal of Business Ethics, Springer, vol. 140(2), pages 353-367, January.
    10. Eugster, Florian & Wagner, Alexander F., 2020. "Value reporting and firm performance," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 40(C).
    11. Hu, Jinshuai & Jiang, Haiyan & Holmes, Mark, 2019. "Government subsidies and corporate investment efficiency: Evidence from China," Emerging Markets Review, Elsevier, vol. 41(C).
    12. Pethe, Abhay & Tandel, Vaidehi & Gandhi, Sahil, 2012. "Unravelling the anatomy of legal corruption in India: Focusing on the ‘honest graft’ by the politicians," MPRA Paper 39306, University Library of Munich, Germany.
    13. Qianhui Ma & Lan Ju & Zishi Zhang, 2022. "Innovation Input and Firm Value: Based on the Moderating Effect of Internal Control," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    14. Ivanov, A., 2015. "How to improve effectiveness of anti-corruption expertise: Public procurement case," Working Papers 6433, Graduate School of Management, St. Petersburg State University.
    15. Wang, Maochuan & Yan, Youliang, 2023. "The dark side of investor interactive platforms: Evidence from corporate investment efficiency," Finance Research Letters, Elsevier, vol. 57(C).
    16. Asiri, Mohammed & Al-Hadi, Ahmed & Taylor, Grantley & Duong, Lien, 2020. "Is corporate tax avoidance associated with investment efficiency?," The North American Journal of Economics and Finance, Elsevier, vol. 52(C).
    17. Sultan Sikandar Mirza & Muhammad Ansar Majeed & Tanveer Ahsan, 2020. "Board gender diversity, competitive pressure and investment efficiency in Chinese private firms," Post-Print hal-02956320, HAL.
    18. Ji, Qiong & Quan, Xiaofeng & Yin, Hongying & Yuan, Qingbo, 2021. "Gambling preferences and stock price crash risk: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 128(C).
    19. Cyrus Aghamolla & Richard T. Thakor, 2022. "Do Mandatory Disclosure Requirements for Private Firms Increase the Propensity of Going Public?," Journal of Accounting Research, Wiley Blackwell, vol. 60(3), pages 755-804, June.
    20. Zhao, Tianjiao, 2021. "Board network, investment efficiency, and the mediating role of CSR: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 897-919.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:ijfr11:v:10:y:2019:i:3:p:216-229. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gina Perry (email available below). General contact details of provider: http://ijfr.sciedupress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.