Acta Oeconomica
Volume/Issue:
Volume 64: Issue Issue Supplement-2
The influence of national leader change on corruption and sovereign rating
Authors:
Kuei-Yuan Wang

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Sheng-Min Tu Asia University Department of Finance 500, Lioufeng Rd. Wufeng, Taichung 41354 Taiwan, R.O.C.

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Pages:
79–97
Online Publication Date:
01 Nov 2014
Publication Date:
01 Nov 2014
Article Category:
Research Article
DOI:
https://doi.org/10.1556/aoecon.64.2014.suppl.7
Keywords:
national leader change; corruption; sovereign rating; human development index
Restricted access

Corruption is a critical social and ethical problem that can impede the economic growth of a country or even ruin a country. In addition, the importance of the sovereign rating of a country cannot be underestimated. A change in the sovereign rating of a country can affect its borrowing capacity. Using members of the United Nations from 1995 to 2012 as the research sample, this study investigated the influence of national leader change on corruption and sovereign rating by analyzing one year after the change in national leadership. The results showed that national leader change exerted a significant, positive effect on the degree of corruption and the sovereign rating one year after the change in national leadership. By including national characteristics, this study found that for countries that have adopted the semipresidential system, national leader change had a significant, negative effect on the degree of corruption and the sovereign rating. For extreme human development countries, national leader change had a significant, negative effect on the degree of corruption but did not significantly affect the sovereign rating. The results of this study can serve as a reference for investors engaged in international investment decision-making.

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Cover Acta Oeconomica
Acta Oeconomica Periodical of the Hungarian Academy of Sciences
Print ISSN:
0001-6373
Online ISSN:
1588-2659

Senior editors

Editors-in-Chief: István P. Székely, Dóra Győrffy

Editor(s): Judit Kálmán

Associate Editors

  • Péter Benczúr, Joint Joint Research Center, European Commission
  • Dóra Benedek, International Monetary Fund
  • Balázs Égert, OECD
  • Dániel Prinz, World Bank
  • Rok Spruk, University of Ljubljana, School of Economics and Business, Slovenia

Editorial Board

  • Anders Åslund, Georgetown University and Advisory Council of CASE, USA
  • István Benczes, Corvinus University of Budapest, Hungary 
  • Agnieszka Chłoń-Domińczak, SGH Warsaw School of Economics, Poland
  • Fabrizio Coricelli, University of Siena, Italy
  • László Csaba, Corvinus University of Budapest, Hungary and Central European University, Austria
  • Beáta Farkas, Faculty of Economics and Business Administration, University of Szeged, Hungary
  • Péter Halmai, Budapest University of Technology and Economics, and National University of Public Service, Hungary
  • Martin Kahanec, Central European University, Austria
  • David Kemme, University of Memphis, USA
  • Michael Landesmann, The Vienna Institute for International Economic Studies (WIIW), Austria
  • Péter Mihályi, Corvinus University of Budapest, Hungary
  • Debora Revoltella, European Investment Bank

Corvinus University of Budapest
Department of Economics
Fővám tér 8 Budapest, H-1093, Hungary
E-mail: judit.kalman@uni-corvinus.hu

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Acta Oeconomica
Language English
Size B5
Year of
Foundation		 1966
Volumes
per Year		 1
Issues
per Year		 4
Founder Magyar Tudományos Akadémia
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Address		 H-1051 Budapest, Hungary, Széchenyi István tér 9.
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ISSN 0001-6373 (Print)
ISSN 1588-2659 (Online)

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