Toms, S. orcid.org/0000-0002-6147-7828 and Lin, C. (2023) Economic freedom, financial development and the determinants of fraud and scandal: The United Kingdom, 1900–2010. Business History. ISSN 0007-6791
Abstract
The paper argues that the incidence of financial fraud and scandals has systemic macro-economic determinants. While not denying organisation specific causes, short-run triggering events, and key players’ motivations, it shows that the extent of fraud and the number of financial scandals depend on the opportunities created by the financial system’s evolution. Using archival and quantitative evidence from the United Kingdom, it specifies aggregate changes in the incidence of fraud and scandal between 1900 and 2010. The evidence shows that economic freedom, including the degree of financial development, the availability of credit, the relative importance of the financial sector, international capital mobility and secrecy, and banking stability, contribute to the prevalence of fraud and scandal. Financial repression explains a generalised reduction in a 25-year period after the Second World War. Conversely, economic liberalisation from 1979 onwards has increased the incidence of fraud and financial scandal.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent. |
Keywords: | Economic freedom; financial fraud; financial scandal; financial development |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 27 Sep 2023 15:27 |
Last Modified: | 29 Nov 2023 12:05 |
Status: | Published online |
Publisher: | Taylor & Francis |
Identification Number: | 10.1080/00076791.2023.2264215 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:203708 |
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Licence: CC-BY-NC-ND 4.0