The dark side of business: economic and financial crime as a catalyst for failure in Europe

Abstract

This research aims to explore the relationship between the number of business failures and the prevalence of economic and financial crime. First, the study contributes to theory by analyzing the connections among the shadow economy, money laundering, corruption, tax burden and corporate insolvencies across various European economies. Second, it offers practical guidance for economic policymakers regarding the impact of these macroeconomic factors on the frequency of business insolvencies.