Model Fit of Determinants of Corporate Financial Corruption in Iran and Proposed Solutions
Keywords:
Financial corruption, organizational culture, transparency, educational strategies, internal control, IranAbstract
Financial corruption has become one of the main challenges to economic and social development in developing countries, including Iran. This study aimed to identify the determinants of financial corruption in publicly listed companies in Iran and to propose appropriate preventive strategies. Using a mixed-methods design (qualitative and quantitative) and a grounded theory approach, key factors of financial corruption were identified, including causal conditions (such as individual motivations and weak internal controls), the core category (non-transparent organizational culture), contextual conditions (legal deficiencies and sanctions), intervening factors (perception of corruption and inefficient recruitment), and consequences (decline of public trust and investment). Data were collected through expert interviews and questionnaires administered to 329 certified public accountants in Iran and analyzed using SPSS and LISREL software. The results indicated that a non-transparent organizational culture plays a central role in perpetuating financial corruption, and that educational strategies (e.g., ethics training) and monitoring strategies (e.g., strengthening internal controls) with a high correlation coefficient (0.69) can help reduce corruption. These findings are consistent with global studies, such as those of the Organisation for Economic Co-operation and Development (OECD, 2020). Practical recommendations include developing continuous training programs, enhancing monitoring systems with modern technologies, and reforming financial regulations. This research provides a comprehensive framework for policymaking to reduce financial corruption and improve transparency and economic efficiency.
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Copyright (c) 2025 Fahimeh Mirzaei (Author); Seyyed Yousef Ahadi Serkani; Mohammad Mahmoodi (Author)
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