Corporate profitability and the global persistence of corruption

Ferris, Stephen P. ; Hanousek, Jan ; Tresl, Jiri

[img] PDF
1-s2.0-S0929119920302996-main.pdf - Published

Download (685kB)

Additional URL:
URN: urn:nbn:de:bsz:180-madoc-631565
Document Type: Article
Year of publication: 2021
The title of a journal, publication series: Journal of Corporate Finance
Volume: 66
Issue number: Article 101855
Page range: 1-18
Place of publication: Amsterdam [u.a.]
Publishing house: Elsevier
ISSN: 0929-1199
Publication language: English
Institution: Business School > ABWL, Finanzwirtschaft u. Finanzmarktinstitutionen (Spalt 2019-)
Pre-existing license: Creative Commons Attribution, Non-Commercial, No Derivatives 4.0 International (CC BY-NC-ND 4.0)
Subject: 650 Management
Abstract: We examine the persistence of corporate corruption for a sample of privately-held firms from 12 Central and Eastern European countries from 2001 to 2015. Using publicly available information and stochastic frontier analysis, we create a proxy for corporate corruption based on a firm's internal inefficiency. We find that corruption enhances a firm's profitability. A channel analysis further reveals that inflating staff costs is the most common approach by which firms divert funds to finance corruption. In spite of corruption's negative effects on a country's economy, we conclude that it persists because of its ability to improve corporate profitability. We refer to this effect as the Corporate Advantage Hypothesis.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.

Dieser Datensatz wurde nicht während einer Tätigkeit an der Universität Mannheim veröffentlicht, dies ist eine Externe Publikation.

Metadata export


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics

You have found an error? Please let us know about your desired correction here: E-Mail

Actions (login required)

Show item Show item