Economic and Non-Economic Variables Affecting Fraud in European Countries

Fraud is one of the most harmful phenomena, because it leads to collapse organizations, causes economic downfall countries, and destroys faith in a country’s capital markets. The impact fraud complex has varying degrees depending on political financial institutional structures country. In this paper, we investigate combined effect non-economic variables using sample 41 developed, transition, developing European countries. data cover period July 2014–December 2020. Panel techniques pooled estimation dynamic panel data/generalized method moments (DPD/GMM) used, keeping view endogeneity perspective. Nevertheless, two-way impacts fixed model estimation—cross-sectional time-based (panel) effects (alternatively)—are used for analyzing relationship among given variables, based Hausman specification test results. Empirical results extended REM FEM approaches with country-specific cross-sectional showing that stability, freedom, poverty, GDP significantly affect proliferation. Political stability appraised be scoring determinant incidence