Does bribery help or hurt firm growth around the world?
Does bribery help or hurt firm growth? Some suggest that bribery greases the wheel of commerce, while others believe that bribery sands the wheel of growth. We argue that firms endogenously choose their level of bribery according to their environments and that the benefits and costs may differ for d...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Springer New York LLC
2012
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| Online Access: | http://hdl.handle.net/20.500.11937/50029 |
| _version_ | 1848758376347992064 |
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| author | Zhou, J. Peng, Mike |
| author_facet | Zhou, J. Peng, Mike |
| author_sort | Zhou, J. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Does bribery help or hurt firm growth? Some suggest that bribery greases the wheel of commerce, while others believe that bribery sands the wheel of growth. We argue that firms endogenously choose their level of bribery according to their environments and that the benefits and costs may differ for different types of bribery. Specifically, small firms are more likely to be forced to engage in bribery, while big firms may strategically engage in bribery. Utilizing a large, cross-country survey sample involving 2,686 firms in 48 countries, we find that firms choose a higher level of bribery when embedded in under-developed market-supporting institutions. After controlling for endogenous bribery choices, bribery hurts firm growth for small and medium-sized firms, but not for large firms. |
| first_indexed | 2025-11-14T09:43:00Z |
| format | Journal Article |
| id | curtin-20.500.11937-50029 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:43:00Z |
| publishDate | 2012 |
| publisher | Springer New York LLC |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-500292017-09-13T15:37:03Z Does bribery help or hurt firm growth around the world? Zhou, J. Peng, Mike Does bribery help or hurt firm growth? Some suggest that bribery greases the wheel of commerce, while others believe that bribery sands the wheel of growth. We argue that firms endogenously choose their level of bribery according to their environments and that the benefits and costs may differ for different types of bribery. Specifically, small firms are more likely to be forced to engage in bribery, while big firms may strategically engage in bribery. Utilizing a large, cross-country survey sample involving 2,686 firms in 48 countries, we find that firms choose a higher level of bribery when embedded in under-developed market-supporting institutions. After controlling for endogenous bribery choices, bribery hurts firm growth for small and medium-sized firms, but not for large firms. 2012 Journal Article http://hdl.handle.net/20.500.11937/50029 10.1007/s10490-011-9274-4 Springer New York LLC restricted |
| spellingShingle | Zhou, J. Peng, Mike Does bribery help or hurt firm growth around the world? |
| title | Does bribery help or hurt firm growth around the world? |
| title_full | Does bribery help or hurt firm growth around the world? |
| title_fullStr | Does bribery help or hurt firm growth around the world? |
| title_full_unstemmed | Does bribery help or hurt firm growth around the world? |
| title_short | Does bribery help or hurt firm growth around the world? |
| title_sort | does bribery help or hurt firm growth around the world? |
| url | http://hdl.handle.net/20.500.11937/50029 |