Bribery environment and firm performance: evidence from Central and Eastern European countries

0440357 - NHU-C 2015 CZ eng V - Research Report
Hanousek, Jan - Kochanova, Anna
Bribery environment and firm performance: evidence from Central and Eastern European countries.
Praha: CERGE-EI, 2014. 39 s. CERGE-EI discussion paper series, 2014 - 228.
R&D Projects: GA ČR(CZ) GBP402/12/G097
Grant - others:UK(CZ) UNCE 204005/2012
Institutional support: PRVOUK-P23
Keywords : bureaucratic corruption * firm bribing behavior * firm performance
Subject RIV: AH - Economics

We examine the relation between bureaucratic corruption and firm performance in CEE countries. While previous research uses data from BEEPS, which suffers from excessive non-reporting of corporate performance, we combine reliable firm financials from the Amadeus database with information on bribery practices from BEEPS. We show that differing consequences of corruption found in previous studies could be explained by the corruption environment in which a firm operates. Basically, higher mean corruption is associated with lower performance, while higher dispersion appears to facilitate firm performance. A detailed analysis is conducted by firm sector and size, and countries’ institutional environments.
Permanent Link: http://hdl.handle.net/11104/0243473