THE EFFECT OF ADMINISTRATIVE CORRUPTION PHENOMENON ON THE SUCCESS OF SMALL AND MEDIUM ENTERPRISES IN IRAQ

Authors

  • Haitham Obaid Abd Alzahrh Department of Mechanical Engineering Faculty Engineering / Babylon University, Iraq
  • Ihab Malik Raji Al-Ameedee College of Islamic science / Babylon University, Iraq

Keywords:

Administrative corruption, employee absentee, employee inefficiency, employee fraud, misuse of assets, small and medium enterprises, return on equity

Abstract

Currently, the organization’ success depends on the control of illegal activities such as fraud and misuse of company assets and capture the attention of recent researchers and policymakers. Thus, the purpose of the research is to examine the impact of administrative corruption (employee absenteeism, employee inefficiency, employee fraud and misuse of assets) on the success of the small and medium enterprises (SMEs) in Iraq. The authors have collected the data from the financial statements of the SMEs from 2016 to 2020. The current study has used the random effect model (REM) and the generalized method of moment (GMM) to test the association among the variables. The results indicated that administrative corruption such as employee absenteeism, employee inefficiency, employee fraud and misuse of assets have a negative association with the success of the SMEs in Iraq. This research guides the regulators regarding the regulation formation related to control administrative corruption.

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Published

2021-12-03