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

0447284 - NHU-C 2016 GB eng V - Research Report
Hanousek, Jan - Kochanova, Anna
Bribery environment and firm performance: evidence from Central and Eastern European Countries.
London: Centre for Economic Policy Research, 2015. 32 s. CEPR discussion paper series, 10499. ISSN 0265-8003
R&D Projects: GA ČR(CZ) GBP402/12/G097
Institutional support: PRVOUK-P23
Keywords : bureaucratic corruption * CEE countries * firm bribing behavior
Subject RIV: AH - Economics
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=10499

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 bribery is associated with lower performance, while higher dispersion of individual firm bribes 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/11104/0249158