Impact of IPSAS Adoption on Governance and Corruption: A Comparative Study of Southern Europe

Bassam Mohammad Maali ^{1, 2}

Amer Morshed ³

Department of International Accounting, German Jordanian University, Amman 11180, Jordan |

Accounting Department, King Talal School of Business Technology, Princess Sumaya University for Technology, Amman 11941, Jordan |

Financial and Accounting Science Department, Faculty of Business, Middle East University, Amman 11831, Jordan |

Publication type: Journal Article

Publication date: 2025-01-30

MDPI

Journal: Journal of Risk and Financial Management

scimago Q2

SJR: 0.485

CiteScore: 4.5

Impact factor: —

ISSN: 19118074

DOI: 10.3390/jrfm18020067

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Abstract

This study examines the impact that International Public Sector Accounting Standards adoption might have on governance quality and corruption control in Spain, Portugal, and Italy. IPSAS was designed to globally enhance public transparency and accountability thanks to accrual accounting. However, its effectiveness in fighting corruption and steering better governance has varied across institutional contexts and implementation phases. This paper examines, using partial least squares structural equation modeling (PLS-SEM) and comparative analysis, how legal systems, political stability, and anti-corruption measures mediate the relationship. The results indicate that full IPSAS adoption, as in the case of Spain, significantly enhances governance if the institutional framework is solid and, by extension, reduces corruption. Partial adoption, such as that by Portugal, exposes moderate improvements, but Italy, still in the preparation of the process, shows the poorest result. The study identifies that the legal system, along with complementary reforms like capacity building and political stability, is a very crucial factor in enhancing the IPSAS impact. This covers the evidential gaps and provides actionable insights for policymakers, while at the same time underlining institutional strength as a key driver for IPSAS adoption, contributing to broader discussions on advancing public sector accounting reforms.