Measurement of damage from corruption in Brazil

2020 ◽  
Vol 27 (4) ◽  
pp. 1239-1239
Author(s):  
Jonatas Dutra Sallaberry ◽  
Liz Spinello Quaesner ◽  
Mayla Cristina Costa ◽  
Leonardo Flach
Keyword(s):  
Latin America ◽  
Design Methodology ◽  
Modus Operandi ◽  
Financial Flows ◽  
Content Type ◽  
Oil Refineries ◽  
Judicial Decisions ◽  
Financial Crimes ◽  
Practical Implications ◽  
Identification Strategy

Purpose This study aims to analyse and measure the damage caused by acts of corruption in the largest investigation in Brazil, known as the “Lava Jato” operation. Design/methodology/approach For the analysis of financial flows, documentary research was carried into denunciation and judicial decisions. Based on the “Follow the Money” methodology, it was possible to follow the inverse trail of money, from the indications of benefits to public agents, financial operators and fake companies up to the deviation of refinery construction. Findings The analysis allowed the identification of damages from acts of corruption that reached 17.8% of the value of the oil refineries built, while the benefit of the corrupting agents was 13.7% of the damage caused. The analysis shows several other characteristics of the movements and the identification strategy of financial crimes. Research limitations/implications Research enabled the development of a strategy to identify and measure the flow of corruption and money laundering. Practical implications Based on the identified financial parameters, it will be possible to estimate the damage caused by a corrupt act for a certain benefit. Originality/value The research identified financial parameters of damages and benefits from acts of corruption in the largest fraud that occurred in the country, which was replicated in modus operandi in several works and countries in Latin America.

How to do business in Brazil

2017 ◽  
Vol 33 (8) ◽  
pp. 36-38
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Design Methodology ◽  
Reading Time ◽  
Content Type ◽  
Business People ◽  
The World ◽  
Pertinent Information ◽  
Specific Culture ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings It is said that Latin America is one of the hardest places in which to do business, and within Latin America as well as considering the differing challenges that Argentina or Columbia may present, Brazil is perhaps the most difficult place to go to in order to develop trade and commercial agreements. In addition to the different language as compared to the rest of the region, there is a very specific culture and life view that will be wholly alien to many business people, whether they are from developed or developing countries around the world. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The springboard network: multinationals in Latin America

2018 ◽  
Vol 13 (5) ◽  
pp. 855-874 ◽  
Author(s):  
Federico Quesada Chaves
Keyword(s):  
Latin America ◽  
Latin American ◽  
Design Methodology ◽  
Entry Mode ◽  
Network Approach ◽  
Content Type ◽  
Organizational Network ◽  
Specific Limitation ◽  
Practical Implications ◽  
Cultural Features

Purpose The purpose of this paper is to provide empirical evidence regarding the springboard regionalization strategy implemented by multinationals entering Latin America and the organizational networks developed to serve this end. Design/methodology/approach Using the organizational network approach, a typology is developed to explain the Springboard network. Quantitative analysis is used, in the form of logistic binary regression, to study these networks composition. Findings From a sample of 154 subsidiaries extracted from the AMADEUS intelligent database, three categories for multinational’s networks are created, with the Spanish subsidiary acting as the leader: strategic centers (SCs), administrative centers (ACs) and regional headquaters (RHQs). Findings provide evidence of cultural features, industry behavior and the multinational’s size and entry mode influence these networks organization. Research limitations/implications It is proposed that culture and historical ties have evolved together and management scholars should be aware of this phenomenon. Specific limitation that this study exhibits is the data provided by AMADEUS and the fact that R&D information for both the Spanish and the Latin American subsidiary were not available. Practical implications Staffing composition and expatriate corporate policy should consider the springboard effect to manage springboard networks. Social implications Industries and authorities in all countries involved should be aware of their role in MNC strategies for regional expansion. Originality/value It is argued that a network of subsidiaries within the multinational can participation in the springboard behavior, which is determined by the culture that the multinational originates from, as well as the Spanish culture, creating a particular type of leadership.

Unearthing money laundering at Brazilian oil giant Petrobras

2019 ◽  
Vol 22 (2) ◽  
pp. 400-406
Author(s):  
Lucas Maragno ◽  
José Alonso Borba
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Financial Crime ◽  
Content Type ◽  
Key Points ◽  
Financial Crimes ◽  
State Agents ◽  
Brazilian History ◽  
Practical Implications ◽  
Allowed State

Purpose This paper aims to provide an overview of key points pertaining to financial crimes taking place during the single largest fraud scandal in Brazilian history. The authors provide details on how the historic fraud was carried out at Petrobras, as well as an overview of recent anti-money laundering regulation in Brazil. Design/methodology/approach The paper is based on an analysis of the scandal and on legal ramifications enacted by the prevailing Public Ministry taking place through the “Lava Jato” operation. Findings Fraud perpetrators continue to find new ways to move laundered money into campaign finance. The authors provide details on how the scheme was perpetrated at the placement, layering and integration stages. Research limitations/implications This study comprehends the first stage of the Federal Police’s operation, comprising 14 allegations of financial crimes. Practical implications A disconnect between regulations in effect and the reality of money laundering in Brazil over several years has failed to impede numerous cases of fraud. However, changes in legislation have allowed state agents to discover cases of fraud, with more and more wrongdoings being investigated. Originality/value The Petrobras fraud, individual experiences of organized financial crime and a widespread lack of understanding of how to detect and prevent fraud on this scale.

An embezzler test for norms, standards and regulations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tiago Cardao-Pito
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Design Methodology ◽  
Methodological Approach ◽  
Future Research ◽  
Content Type ◽  
Financial Crimes ◽  
Standards And Regulations ◽  
Practical Implications ◽  
Resultant Material

Purpose The purpose of this study is to address the question that economic standards, norms and regulations can possess weak spots that might be exploitable for the embezzlement of an organization’s assets with resultant material consequences in money laundering,tax evasion, fraud, corruption and other potential financial crimes. Design/methodology/approach The author’s methodological approach is to introduce and discuss a new logical-deductive test that the author names “embezzler test”. The author’s test investigates regulatory architectures from the perspective of someone attempting to divert assets from or to an organization. It appraises whether a potential embezzler could divert resources without being detected and sanctioned. Findings The embezzler test can be applied to a broad range of standards, norms and regulations. Research limitations/implications This new test can be improved and further calibrated in future research. Practical implications Researchers, regulators and law makers can use the new test to identify and eventually fix weak spots for embezzlement in norms, standards and regulations. Originality/value To the best of the author’s knowledge, such a test has never been formulated or applied before to identify weak spots for potential embezzlement in regulatory architectures.

Preserving the distinctiveness of corporate marks

2018 ◽  
Vol 25 (3) ◽  
pp. 734-749
Author(s):  
Afroza Begum
Keyword(s):  
Design Methodology ◽  
Legal Aspects ◽  
Special Focus ◽  
Economic Implication ◽  
Content Type ◽  
Judicial Decisions ◽  
Technological Advances ◽  
Central Piece ◽  
The Social ◽  
Practical Implications

Purpose This paper aims to investigate the Indian legal and judicial approaches to well-known trademark (WT) by placing special focus on the way the judiciary has striven to foster the regulatory goal of defending the distinctiveness of WT. Design/methodology/approach The research is based on primary and secondary resources; especially, the paper critically examines the central piece of legislation relevant to WT and analyses and compares a number of important judicial decisions of India. Findings Despite some limitations, the judicial initiatives reflect an impressive progression towards WT, and given the contemporary commercial imperatives backed up by technological advances, the interconnectedness of economies and global corporisation, such a progression is indispensable. Research limitations/implications The research involves only the legal aspects of WT; therefore, the social and economic implication is beyond the scope of it. Practical implications Even though the legal and judicial attempts in India have raised an inevitable tension between different competing claims and are in some instances intensely debated, a review of existing resources evidences a series of effective methods and practices where a balance can sensibly be drawn between those claims.

Creative accounting a tool for financial crime: a review of the techniques and its effects

2020 ◽  
Vol 27 (2) ◽  
pp. 397-411
Author(s):  
Chander Mohan Gupta ◽  
Devesh Kumar
Keyword(s):  
Empirical Study ◽  
Design Methodology ◽  
Financial Statements ◽  
Financial Crime ◽  
Content Type ◽  
Creative Accounting ◽  
The People ◽  
Financial Crimes ◽  
The World ◽  
Practical Implications

Purpose The purpose of this paper is to study the concept and procedure of creative accounting as how is it worked around and how it can lead to financial crimes. The procedure which are followed and which are the people who are involved and who are the victims of such crimes. The methods which are used to perform the action and how is it done. What are the findings of different researchers who have studied the same concept and how can it be curbed is the main purpose of the paper. Design/methodology/approach This paper is designed to find out the working of accounting policies and how the loopholes in the same can actually be taken into account, resulting in a certain number games which can be played around it, and to get the desired outcome in the preparation of financial statements. Findings Creative accounting, though legal and acceptable around the world, gives in the way to loopholes provided by the acts and rules governing the preparation of financial statements and eventually leading to financial crimes and hampering the economy as a whole. Research limitations/implications The limitations of this study remain to the fact that it is an empirical study, as a lot of papers and articles were studied before giving it a shape and reaching a conclusion. Practical implications Creative accounting though not illegal but the excess use of the same has given daunting effects on the financial statements and as a result have resulted into financial frauds and looting of peoples money throughout the world. Social implications Hard-earned money of the investors is looted and no action can be taken against as the mechanism and the legal bodies are still struggling to curb the problem, and thus it is very important to learn about creative accounting. Originality/value This study leads to the understanding of the growth of creative accounting and how it has resulted in accounting frauds leading to financial crimes in an economy.

Identity theft: a small step towards big financial crimes

2020 ◽  
Vol 27 (3) ◽  
pp. 897-910
Author(s):  
Chander Mohan Gupta ◽  
Devesh Kumar
Keyword(s):  
Design Methodology ◽  
Secondary Data ◽  
Identity Theft ◽  
Common Type ◽  
Financial Crime ◽  
Small Step ◽  
Research Papers ◽  
Content Type ◽  
Financial Crimes ◽  
Practical Implications

Purpose This paper aims to study the concept of identity fraud and how these identity thefts can actually lead to financial crime. These crimes which usually were done in the traditional way now have taken leaps with the increase in the use of cyber world. Design/methodology/approach Several research papers, articles and newsfeeds were referred to study the concept, growth, scope, effect and impact of identity theft. It was also found that identity theft is the most common type of cybercrimes. Findings Identity theft though a simple crime but if not taken care of can lead to multiple crimes which can affect not only individuals but also companies. And when these crimes impact companies, they can actually hamper the economy as a whole. Practical implications Information for the same is not available very easily, so the study is solely based on secondary data. Social implications Identity theft effects an individual not only financially but also mentally and socially; thus, these effect each and every one in the said economy. Originality/value This paper is an original work of the authors, and it is for the use of students, educators and academicians.

Shareholder activism spreads globally

2014 ◽  
Vol 15 (2) ◽  
pp. 33-35
Author(s):  
Abigail Pickering Bomba ◽  
Steven Epstein ◽  
Philip Richter ◽  
David Shine ◽  
John E. Sorkin ◽  
...  
Keyword(s):  
Latin America ◽  
Design Methodology ◽  
Hedge Fund ◽  
Market Value ◽  
Shareholder Activism ◽  
Corporate Boards ◽  
Content Type ◽  
Recent Developments ◽  
The Usa ◽  
Practical Implications

Purpose – To inform on recent developments in shareholder activism, a phenomenon well-documented in North America and Europe and now spreading to Latin America, and summarize the key considerations for corporate boards. Design/methodology/approach – The article discusses a recent development involving Cartica Capital, a USA hedge fund and minority shareholder in CorpBanca, a Chilean bank pursuing a merger with Itau Unibanco Holding SA, Latin America’s biggest bank by market value, Cartica. Findings – Shareholder activism will continue to be an expanding global phenomenon. Practical implications – Boards must continue to plan accordingly when structuring a strategic transaction, both in and outside the USA market. Originality/value – Practical overview of recent developments in shareholder activism with a review of the key considerations for practitioners.

EFCC and the politics of combating corruption in Nigeria (2003-2012)

2016 ◽  
Vol 23 (4) ◽  
pp. 725-747 ◽  
Author(s):  
Akume T. Albert ◽  
F.C. Okoli
Keyword(s):  
Design Methodology ◽  
Analytical Approach ◽  
Social Implications ◽  
Content Type ◽  
Financial Crimes ◽  
Government Interference ◽  
Weak Laws ◽  
Practical Implications

Purpose This paper aims to assess if the Economic and Financial Crimes Commission (EFCC) has been effective in combating corruption in Nigeria from 2003-2012. Design/methodology/approach The paper adopted a documentary analytical approach. Findings The organization has not been effective in combating corruption in Nigeria. Research limitations/implications The study is between 2003-2012. Practical implications There is a need to correct those identified inhibitors that undermined the Commission’s capacity, such as intrusive government interference, lack of autonomy, poor funding and weak laws, among others, to mitigate corruption. Social implications Eliminating those identified constraints will remove the incentive to be corrupt, thereby curbing the desire to be corrupt. Originality/value This paper is an original assessment of the EFCC's effectiveness in combating corruption in Nigeria during the specified period.

Consumer value creation through WhatsApp use

2019 ◽  
Vol 32 (4) ◽  
pp. 455-471
Author(s):  
Jorge Cruz-Cárdenas ◽  
Jorge Guadalupe-Lanas ◽  
Ekaterina Zabelina ◽  
Andrés Palacio-Fierro ◽  
Margarita Velín-Fárez ◽  
...  
Keyword(s):  
Latin American ◽  
Value Creation ◽  
Emotional Support ◽  
Design Methodology ◽  
Instant Messaging ◽  
Role Performance ◽  
Content Type ◽  
Consumer Value ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to understand in-depth how consumers create value in their lives using WhatsApp, the leading mobile instant messaging (MIM) application. Design/methodology/approach The study adopts the perspective of customer-dominant logic (CDL) and uses a qualitative multimethod design involving 3 focus groups and 25 subsequent in-depth interviews. The research setting was Ecuador, a Latin American country. Findings Analysis and interpretation of the participants’ stories made it possible to identify and understand the creation of four types of value: maintaining and strengthening relationships; improving role performance; emotional support; and entertainment and fun. In addition, the present study proposes a conceptual model of consumer value creation as it applies to MIM. Practical implications Understanding the way consumers create value in their lives using MIM is important not only for organizations that offer MIM applications, but also for those companies that develop other applications for mobile phones or for those who wish to use MIM as an electronic word-of-mouth vehicle. Originality/value The current study is one of the first to address the topic of consumer behavior in the use of technologies from the perspective of CDL; this perspective enables an integrated qualitative vision of value creation in which the consumer is the protagonist.

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