Scholarly record

ANALYSIS OF ECONOMIC CRIME IN SLOVAKIA

SUHANYI, L., SUHANYIOVA, A., MOKRISOVA, M., HORVATHOVA, J.

Abstract

The fraudulence is very harmful for each company and it has damaging effect on the business development. Beyond the direct financial losses it has also other negative effects, as the loss of business partners, damage to the trade relations, loss of the best employees or degradation of the morale in the organization. Based on dozens of corruption causes and frauds publicized in the media in the Slovak Republic, it looks like the level of corruption and fraud at our society exceeded the imaginable level. The following paradox can be seen: the more control mechanisms are implemented, the higher is the rate of fraud detection. Therefore, in the countries with sophisticated anti-fraud tools was the rate of solved crimes higher, but their average losses were lower. In addition to the high-quality legislation that allows prosecution of criminals, the rate of detection of economic crime significantly depends on the corporate culture and the measures taken by management. The essence of prevention and detection of economic crime depends on the type of crime. The three most common types of economic crimes in the Europe are: corruption, cash theft and fraudulent financial reporting. When we talk about corruption, the first thought of many people includes the corruption in the public sector. Corruption in the private companies is rarely discussed in the media, which does not mean that it is less frequent or less serious form of corruption. Mostly exposed to the corruption are all the employees with the authority to agree new contracts or payments, or if they come into contact with third parties, e.g. during the procurement process. Cash theft is described as the direct theft of cash. The offender simply takes the money and walks away with it. Fraudulent reporting is a type of fraud usually performed by top management at the expense of shareholders. It is often motivated by the mechanisms for management evaluation proceeded before the payment of financial bonus. Although the fraudulent reporting is less frequent fraud, these frauds have the greatest impact. Examples of the recent past indicate (associated with falls of large global companies) that it is not easy to detect the economic crime and that many managers were blind to specific risks. The aim of the paper will be to investigate the development of economic crime in Slovakia since 2005 on the basis of secondary data, to compare the economic crime in individual regions of Slovakia, to analyse the investigated economic fraud in relation to the total number of detected frauds and to analyse its impact on the total amount of financial losses of companies. The results of the analyses will be evaluated and solutions will be proposed. Mathematical and statistical methods, synthesis, deduction and comparison will be used within the paper preparation.

Publication Impact Profile

• Captures
• Mendeley - Readers: 9

PLUMX see details

DOI resolver: doi.org/10.5593/SGEMSOCIAL2015/B23/S7.006

Publication details

Back to publication list