Relationship of social control over corruption and mismanagement in the execution of health expenditures in Brazilian municipalities

This research investigated the interaction between social control, corruption and mismanagement in Brazilian municipalities in health. Using data from the Office of the Comptroller General of the Union (CGU), other available databases, Corruption and Municipal Mismanagement Indices were constructed. The methodology included content analysis, principal component analysis, and inflated beta regression. Based on the principal-agent, rent-seeking behavior, and incumbent advantage theories, the study revealed that political incentives, revenue volume, and social control significantly impact levels of corruption in municipal health. The re-election of the mayor and a favorable environment for social control were associated with a reduction in corruption, while greater financial transactions increased the indexes. As for mismanagement, municipalities with higher intergovernmental transfers and recent audits had a lower rate.