Corruption, governance and firm performance: Evidence from Indian enterprises

Sharma, Chandan; Mitra, Arup

doi:10.1016/j.jpolmod.2015.05.001

Cited by 100 publications

(64 citation statements)

References 33 publications

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“…The empirical findings of some other recent studies, for instance, d'Agostino, Dunne, and Pieroni (, ), Sharma and Mitra () and Huang () for cross‐country panel, have produced mixed results, thus providing some support for both the hypotheses.…”

Section: Hypotheses and Literature Reviewmentioning

confidence: 91%

Corruption and Economic Growth: Some New Empirical Evidence from a Global Sample

Sharma

Mitra

2019

J of Intl Development

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This paper assesses the impact of corruption control and regulation quality on growth across countries over the period 1996 through 2015. After dealing with the possible endogeneity problem through the dynamic panel data models, our findings are suggestive of the positive effects of corruption control. Thus, our analysis tends to support the ‘sand the wheels' view at the aggregate level as well as for lower and lower–middle‐income countries. Similar results are also obtained for regulation quality. However, contrary to the theoretical arguments, the joint effect of regulation and corruption does not seem to be significant empirically for countries from any of the income groups. Evidence is also indicative of a positive effect on trade across countries from all income groups. Although our results failed to support the natural resource curse hypothesis, countries with efficient institutions and low level of corruption are not seen to experience any resource curse. Finally, policy implications of these findings are brought out. © 2019 John Wiley & Sons, Ltd.

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Section: Hypotheses and Literature Reviewmentioning

confidence: 91%

Corruption and Economic Growth: Some New Empirical Evidence from a Global Sample

Sharma

Mitra

2019

J of Intl Development

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“…Also, Goel and Nelson (2018) suggested the positive effect of corruption on innovation based on their extensive research regarding developing countries. This is evidenced by Chandan and Arup (2015) in their research study on Indian companies, emphasizing that paying bribe to governmental structures and institutions' officials has a positive influence on innovation in companies. The positive influence of corruption on business innovation was also noticed by Krammer (2013) in his extended study taking into consideration thirty transition economies.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The impact of corruption on innovation differs according to a variety of factors such as: the efficiency degree of governmental structures and institutions, the extent of corruption, the innovation type, the approach level: business or national. Also, the influence of corruption on innovation varies depending on the conditions that encourage companies to pay bribes in countries with a different level of development (Chandan & Arup, 2015). There is a vast literature mainly focused on the impact of corruption on innovation at countries level and on economic development (Mrad & Bouaziz, 2018) and there are still few researches that analyse the impact of corruption on innovation at corporate level (Karaman Kabadurmuş, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…This approach is more morally and legally correct and is known as "sanding the wheels" theory. The second point of view addresses the relationship between corruption and innovation from a perspective that is incompatible with the principles of morality and legality, showing that under certain conditions corruption can have a positive effect on innovation (Chandan & Arup, 2015;Karaman Kabadurmuş, 2017;Barasa, 2018 and others). This approach is known as "greasing the wheels" theory.…”

Section: Introductionmentioning

confidence: 99%

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Does Corruption Affects Business Innovation? Insights From Emerging Countries

Pirtea

Sipos

Ionescu

2019

Journal of Business Economics and Management

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There are very different outcomes in the literature regarding the influences of corruption on business innovation and also arguments for both "sanding the wheels" and "greasing the wheels" approaches. The main goal pursued in this paper is to broaden the understanding of the corruption influence on business innovation, considering seven representative dimensions of corruption at governmental structures and institutions' level and also four relevant dimensions of business innovation, less approached so far. The originality and relevance of this paper are based on that these seven different dimensions of corruption are targeting three characteristic features of it, as bribery's prevalence, the bribery's spread and the companies' propensity to offer gifts for overcoming the bureaucratic pressures. Moreover, the four different new dimensions of business innovation are targeting the company's propensity for innovating and strengthening its image and the way of connecting with business partners in a changing business environment. Considering an extensive data set for 110 emergent countries from four continents for the period between 2002 and 2014 and using the generalized linear model framework, this research study is emphasizing that corruption at governmental structures and institutional level has a significant negative impact on business innovation, adversely affecting innovation perspectives.

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“…There are various indicators that can be used to measure firm growth. These include growth rates of firm sales income (Wang and You 2012), growth rates of firm profits (Sharma and Mitra 2015), employment growth (Williams and Martinez-Perez 2016), investment (De Waldemar 2012), and firm efficiency (Hanousek et al 2017). In this study, we have used employment growth as a measure of firm growth.…”

Section: Introductionmentioning

confidence: 99%

The Perceived Impact of Public Sector Corruption on Economic Performance of Micro, Small, and Medium Enterprises in a Developing Country

2019

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Micro, small, and medium enterprises (MSMEs) contribute to the economic development of most developing countries. However, the economic performance of the MSMEs is often restricted by several obstacles. This paper reports on a study of the impacts of public sector corruption on employment growth in MSMEs, as perceived by their managers/owners. The data originated from a nationwide survey that involved MSMEs managers/owners in Papua New Guinea (PNG) that were selected by a stratified random sampling technic. The data was analyzed using a two-stage least squares (2SLS) regression model. The results show that MSME managers/owners perceive that corruption in the public sector is generally linked to an increase in employment growth in their firms. Medium-size enterprises benefit most from corruption in the public sector, whereas small-size firms appear not to benefit. The findings indicate that other than corruption, there might be failures in the public institutions that are hampering the competitiveness, innovations and efficiency in MSMEs. Corrupt practices can precipitate the loss of revenue that would have accrued to the government from tax that could be used to provide facilities required by the public institutions. Corruption in the public institutions of developing countries such as PNG can be tackled by implementing strategies that promote zero-tolerance for corruption. These include promoting public awareness of the cost of corruption to the country’s economy, improvement in the quality of governance, and expanding the capacity of government agencies for effective and efficient service delivery. Increasing the penalty for engaging in corrupt practices could also be considered, while people who engage in practices that discourage corruption should be rewarded. The findings contribute to a potential strategy that could be used to promote ease of doing business in a country by considering the obstacles that MSMEs face.

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Corruption, governance and firm performance: Evidence from Indian enterprises

Cited by 100 publications

References 33 publications

Corruption and Economic Growth: Some New Empirical Evidence from a Global Sample

Corruption and Economic Growth: Some New Empirical Evidence from a Global Sample

Does Corruption Affects Business Innovation? Insights From Emerging Countries

The Perceived Impact of Public Sector Corruption on Economic Performance of Micro, Small, and Medium Enterprises in a Developing Country

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