Publicação

Does corruption boost or harm firms' performance in developing and emerging economies? A firm‐level study

Detalhes bibliográficos
Resumo:	In the last decade, a growing number of studies have addressed the ongoing debate about whether corruption sands or greases the wheels of business at the firm level. This study revisits this debate and proposes a comprehensive theoretical framework to test whether corruption harms or boosts firm performance, as well as the extent to which this relationship is mediated by the countries institutional settings, the size and strategic behaviour of the firms, and market competition. Based on a sample of 21,250 firms located in 117 emerging and developing countries, and resorting to instrumental variable (IV) estimations, three main results were found: (a) regardless of the proxy used for corruption and firm performance, the former clearly harms the latter; (b) corruption greases the wheels of business for African firms but it sands the wheels for firms in Latin America, the Caribbean, Eastern Europe, Central Asia, and Southern Asia; and (c) the negative impact of corruption on performance is mitigated for larger and exporting firms. (c) 2020 John Wiley & Sons Ltd
País:	Portugal
Tipo de documento:	journal article
Tipo de acesso:	Restrito
Instituição associada:	Repositório Aberto da Universidade do Porto
Idioma:	inglês
Origem:	Repositório Aberto da Universidade do Porto

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conditionsOfAccess_str	restricted access
country_str	PT
description	In the last decade, a growing number of studies have addressed the ongoing debate about whether corruption sands or greases the wheels of business at the firm level. This study revisits this debate and proposes a comprehensive theoretical framework to test whether corruption harms or boosts firm performance, as well as the extent to which this relationship is mediated by the countries institutional settings, the size and strategic behaviour of the firms, and market competition. Based on a sample of 21,250 firms located in 117 emerging and developing countries, and resorting to instrumental variable (IV) estimations, three main results were found: (a) regardless of the proxy used for corruption and firm performance, the former clearly harms the latter; (b) corruption greases the wheels of business for African firms but it sands the wheels for firms in Latin America, the Caribbean, Eastern Europe, Central Asia, and Southern Asia; and (c) the negative impact of corruption on performance is mitigated for larger and exporting firms. (c) 2020 John Wiley & Sons Ltd
documentTypeURL_str	http://purl.org/coar/resource_type/c_6501
documentType_str	journal article
id	6c8c8eff-f9a1-4577-9df4-ef312be2dc8c
identifierHandle_str	https://hdl.handle.net/10216/130874
language	eng
relatedInstitutions_str_mv	Repositório Aberto da Universidade do Porto
resourceName_str	Repositório Aberto da Universidade do Porto
spellingShingle	Does corruption boost or harm firms' performance in developing and emerging economies? A firm‐level study
title	Does corruption boost or harm firms' performance in developing and emerging economies? A firm‐level study