It Is Time for Anti-Bribery: Financial Institutions Set the New Strategic “Roadmap” to Mitigate Illicit Practices and Corruption in the Market
The financial sector is characterized by complexity due to the management of a large volume of transactions, which can lead to the difficulty of considering, identifying, and monitoring them. The lack of mechanisms in monitoring and control transactions can contribute to the development of illegal p...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-11-01
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| Series: | Administrative Sciences |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2076-3387/12/4/166 |
| _version_ | 1797461949780328448 |
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| author | Konstantina Ragazou Ioannis Passas Alexandros Garefalakis |
| author_facet | Konstantina Ragazou Ioannis Passas Alexandros Garefalakis |
| author_sort | Konstantina Ragazou |
| collection | DOAJ |
| description | The financial sector is characterized by complexity due to the management of a large volume of transactions, which can lead to the difficulty of considering, identifying, and monitoring them. The lack of mechanisms in monitoring and control transactions can contribute to the development of illegal practices within a company, such as fraud, corruption, bribery, and money laundering. These phenomena can affect financial institutions negatively. Therefore, the development of an appropriate corporate governance system can ensure to members of the board and executives in a company that any illegal practice can be detected. This study aims to highlight the factors that contribute to the development of illegal practices within European financial institutions. This can help executives to plan and mitigate the illicit practices that may emerge. For this purpose, a binary logit regression analysis on panel data from 2018 to 2020 was applied to 336 European financial companies. The findings of this research emphasize the crucial role of corporate governance in the prevention of the development of illicit issues within European financial institutions, while human resources can be characterized as a pathway to corruption. Both factors, corporate governance and human resources, are main pillars of environmental, social, and corporate governance (ESG), which indicates the need of the financial sector in Europe for the elaboration of anti-corruption strategies. Thus, companies within the sector can improve their ESG score. |
| first_indexed | 2024-03-09T17:27:35Z |
| format | Article |
| id | doaj.art-12585e89e77d4803afaf834f02f0f925 |
| institution | Directory Open Access Journal |
| issn | 2076-3387 |
| language | English |
| last_indexed | 2024-03-09T17:27:35Z |
| publishDate | 2022-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Administrative Sciences |
| spelling | doaj.art-12585e89e77d4803afaf834f02f0f9252023-11-24T12:36:27ZengMDPI AGAdministrative Sciences2076-33872022-11-0112416610.3390/admsci12040166It Is Time for Anti-Bribery: Financial Institutions Set the New Strategic “Roadmap” to Mitigate Illicit Practices and Corruption in the MarketKonstantina Ragazou0Ioannis Passas1Alexandros Garefalakis2Department of Accounting and Finance, University of Western Macedonia, GR50100 Kozani, GreeceDepartment of Business Administration and Tourism, Hellenic Mediterranean University, GR71410 Heraklion, GreeceDepartment of Business Administration, Neapolis University Pafos, Paphos 8042, CyprusThe financial sector is characterized by complexity due to the management of a large volume of transactions, which can lead to the difficulty of considering, identifying, and monitoring them. The lack of mechanisms in monitoring and control transactions can contribute to the development of illegal practices within a company, such as fraud, corruption, bribery, and money laundering. These phenomena can affect financial institutions negatively. Therefore, the development of an appropriate corporate governance system can ensure to members of the board and executives in a company that any illegal practice can be detected. This study aims to highlight the factors that contribute to the development of illegal practices within European financial institutions. This can help executives to plan and mitigate the illicit practices that may emerge. For this purpose, a binary logit regression analysis on panel data from 2018 to 2020 was applied to 336 European financial companies. The findings of this research emphasize the crucial role of corporate governance in the prevention of the development of illicit issues within European financial institutions, while human resources can be characterized as a pathway to corruption. Both factors, corporate governance and human resources, are main pillars of environmental, social, and corporate governance (ESG), which indicates the need of the financial sector in Europe for the elaboration of anti-corruption strategies. Thus, companies within the sector can improve their ESG score.https://www.mdpi.com/2076-3387/12/4/166anti-corruption strategyfinancial institutionsmanagementgovernancehuman resource |
| spellingShingle | Konstantina Ragazou Ioannis Passas Alexandros Garefalakis It Is Time for Anti-Bribery: Financial Institutions Set the New Strategic “Roadmap” to Mitigate Illicit Practices and Corruption in the Market Administrative Sciences anti-corruption strategy financial institutions management governance human resource |
| title | It Is Time for Anti-Bribery: Financial Institutions Set the New Strategic “Roadmap” to Mitigate Illicit Practices and Corruption in the Market |
| title_full | It Is Time for Anti-Bribery: Financial Institutions Set the New Strategic “Roadmap” to Mitigate Illicit Practices and Corruption in the Market |
| title_fullStr | It Is Time for Anti-Bribery: Financial Institutions Set the New Strategic “Roadmap” to Mitigate Illicit Practices and Corruption in the Market |
| title_full_unstemmed | It Is Time for Anti-Bribery: Financial Institutions Set the New Strategic “Roadmap” to Mitigate Illicit Practices and Corruption in the Market |
| title_short | It Is Time for Anti-Bribery: Financial Institutions Set the New Strategic “Roadmap” to Mitigate Illicit Practices and Corruption in the Market |
| title_sort | it is time for anti bribery financial institutions set the new strategic roadmap to mitigate illicit practices and corruption in the market |
| topic | anti-corruption strategy financial institutions management governance human resource |
| url | https://www.mdpi.com/2076-3387/12/4/166 |
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