Number of the records: 1
Corporate profitability and the global persistence of corruption
- 1.
SYSNO ASEP 0525513 Document Type V - Research Report R&D Document Type The record was not marked in the RIV Title Corporate profitability and the global persistence of corruption Author(s) Ferris, S. P. (US)
Hanousek, Jan (NHU-C) RID
Trešl, Jiří (NHU-C)Issue data Prague: CERGE-EI, 2020 ISSN 1211-3298 Series CERGE-EI Working Paper Series Series number 659 Number of pages 44 s. Publication form Print - P Language eng - English Country CZ - Czech Republic Keywords corruption ; inefficiency ; performance Subject RIV AH - Economics OECD category Applied Economics, Econometrics R&D Projects GA18-18509S GA ČR - Czech Science Foundation (CSF) Institutional support NHU-C - Progres-Q24 Annotation We examine the persistence of corporate corruption for a sample of privately-held firms from 12 Central and Eastern European countries over the period 2001 to 2015. Creating 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. We conclude that corruption persists because of its ability to improve a firm’s return on assets, which we refer to as the Corporate Advantage Hypothesis. Workplace Economics Institute - CERGE Contact Tomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122 Year of Publishing 2021 Electronic address https://www.cerge-ei.cz/pdf/wp/Wp659.pdf
Number of the records: 1