Digital Payments and Firm-Level Governance in Mauritania

This study examines whether higher reliance on electronic payments in routine business transactions is associated with stronger firm governance, measured by external audit engagement and a composite index of management practices. Using representative firm survey data from Mauritania and survey-weighted regressions (logit for audit incidence; OLS for management scores), models control for size, age, leverage, profitability and markers of formalization such as loan access, quality certifications, and online presence.Results indicate that electronic payment intensity by itself is not significantly associated with external audit or management practices quality; Instead, firm age, access to formal credit, quality certification and broader digital readiness appear more closely related to governance-related practices. This finding is robust to alternative e-payment thresholds, unweighted estimators, probit models and alternative governance outcomes. Further sensitivity checks that reclassify payment intensity, separate receipts from disbursements, and consider alternative outcomes (certification, professional management, electronic tax interactions) produce a consistent pattern: digital payments appear to deliver governance gains mainly when accompanied by complementary institutional and firm-level capacities. Policy implications emphasize aligning digital payment promotion with investments in audit capacity, data-sharing standards, management training, and public–private initiatives that strengthen firms’ record-keeping and compliance systems so that traceable transaction records can be translated into improved transparency and accountability.