Purpose The purpose of this paper is to examine the significant association between political institutions and the control of corruption. Design/methodology/approach This study uses ordinary least squares model to examine the following: quality of political institutions; the association between the strength of democratic institutions and control of corruption; the association between government effectiveness and control of corruption; and the association between legal institutions and control of corruption. Findings The result shows that there is positive association between democratic institutions, government bureaucracy and rule of law with the control of corruption. From the political perspective, stronger democratic institutions are found to be associated with higher ability to control corruption in a country. When viewed from country’s economic and social well-being perspective, highly effective government bureaucracy is positively associated with ability to control corruption. Finally, rule of law is also associated with the control of corruption. Originality/value This study points toward clear priorities for reform as stronger democratic institutions, efficient government bureaucracy and adherence to the rule of law improve the control of corruption. The results show that stronger democratic institutions, highly effective government bureaucracy and rule of law are associated with higher control of corruption. This supports the theory that quality political institutions reduce corruption in the long-run. In addition, this study shows that press freedom, regulatory quality and political stability further enhance the capacity of such institutions to combat corruption. Conversely, crony capitalism systems undermine this positive association.
There had been evidences reported that the accounting earnings and cash flows have information content for stock valuation. However, it is still questionable on whether cash flows have incremental information content beyond earnings disclosures. This paper examines the relative information content of earnings and cash flows in explaining stock returns. By employing a sample of service companies from the years 2002 to 2013, the study adds evidence on the impact of accounting earnings and cash flows on annual stock returns of Malaysian public listed companies. Earnings are found to have more significant impact on stock returns and demonstrate a stronger degree of positive association with the stock returns. Among the three components cash flow, investing cash flows are found to have weak influence on the stock returns. The findings suggest that earnings have greater explanatory power for stock returns than cash flows and the cash flows have weak incremental information content beyond earnings. In general, the investors tend to value stock prices of the service companies using earnings rather than cash flows in the services sector.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.