Dimension of corruption and firm performance: an empirical analysis from BEEPS survey

Ashyrov, Gaygysyz; Akuffo, Isaac Nana

doi:10.1108/ijse-08-2019-0476

Cited by 7 publications

(3 citation statements)

References 57 publications

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“…Aralica et al, (2018) and Ojeka et al (2019) support the findings that control of corruption improves the firm’s performance in Central and Southeastern Europe and Nigeria, respectively. In contrast, Ashyrov and Akuffo (2020) find that corruption and bribery promote the firm’s productivity.…”

Section: Literature Reviewmentioning

confidence: 75%

Do Institutions Promote Firm Performance? Evidence from Sub-Saharan Africa

Jibir

Abdu

Bello

et al. 2019

Review of Market Integration

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This article examines the roles of institutions in driving firms’ performance using merged Enterprise Panel Survey data sets collected and compiled by World Bank for 23 sub-Saharan Africa (SSA). The study used labour productivity as a proxy of firms’ performance due to its advantages over total factor productivity. To address the problems of multiple sources of heterogeneity and simultaneity biases, the study employed high-dimensional fixed-effects model together with its instrumental variable version to estimate the impacts of institutions on firms’ performance in SSA. The study established that institutions contribute significantly and positively to firms’ performance in SSA. The study infers that control of corruption, government effectiveness, regulatory quality and rule of law are pro-market institutions that effectively create favourable business and investment climates. Other findings of the study include capital–labour ratio, export, high school, average labour costs, research and development (R&D) and capacity utilisation, which all drive the firm’s performance in SSA. Thus, the findings imply that prevailing and future policies on business, trade and investment in SSA should also incorporate institutional reforms as one of the essential measures to rapidly and sustainably boost economic performance in the region.

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Section: Literature Reviewmentioning

confidence: 75%

Do Institutions Promote Firm Performance? Evidence from Sub-Saharan Africa

Jibir

Abdu

Bello

et al. 2019

Review of Market Integration

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“…However, Seck (2020) has recently argued that bribery could grease the wheels of commerce for small and expanding firms by increasing their labor productivity, investment and likelihood to enter export markets; meanwhile, corruption could also sand the wheels for mature firms and harm their performance. In another study, Ashyrov and Akuffo (2020) have shown that political corruption was positively associated with firms’ labor productivity in post-communist economies; in other words, firms could exploit their political connections with the government to enhance their operations.…”

Section: Literature Reviewmentioning

confidence: 99%

Does bribing lead to extra convenience or is it a barrier to longitudinal growth? Empirical evidence from South American Firms

Wu¹

2021

IJDI

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Purpose This paper aims to study how firms’ longitudinal and dynamic growth will be affected by their bribing decisions to address the controversies existing in the extant literature on the impacts of briberies. Design/methodology/approach The authors acquired information from Enterprise Survey by the World Bank and compiled a unique panel data set including firms from five South American countries between 2006 and 2017. The authors used multiple methods to estimate firms’ productivity. A comprehensive inspection of firms’ longitudinal development using a two-step estimation method that addressed the endogeneity issue was then conducted. Findings Bribery could significantly shorten the waiting time for resources to become available. However, bribery also substantially and robustly slows down firms’ productivity growth over time. Meanwhile, a bribing firm is very likely to bribe again in the future. Originality/value This paper contributes to the extant literature by pioneering the empirical study of firms’ bribing decisions and their longitudinal growth. First, the authors constructed unique panel data and established a longitudinal investigation upon firms’ dynamic growth after bribing, filling the literature gap by studying the time-lagging effect of bribery on firms’ growth. Second, the authors performed a comprehensive overview of South American firms’ growth by looking into the dynamics of their production, employment, resource delay and productivity across years. Third, the authors found that bribing exerted contingent impacts upon firms’ growth, reconciling the mixed evidence in the literature.

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“…conducted through misuse of authority or power by public (government) or private (firms) officeholders for private gain and benefit, financial or otherwise.” There are several reasons to explain why firms engage in corruption. Although this illegal activity allows firms to surpass bureaucratic processes, complex regulations (Lui, 1985) and develop networks or social capital to exceed the challenges of entering a new market (Jong et al, 2012), which promotes growth and achieves higher financial performance (Ashyrov & Akuffo, 2020; Williams & Kedir, 2016), firms may face reduced financial performance because of excessive bribe payment. Moreover, from previous empirical evidence, family firms perform a deeper concern for their image with the public and are not willing to engage in unethical activities (López-Pérez et al, 2018).…”

Section: Theory and Hypotheses Developmentmentioning

confidence: 99%

Female Managers and Corruption in SMEs: A Comparison Between Family and Nonfamily SMEs in Vietnam

Tran

Nguyễn

et al. 2022

Sage Open

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Empirical evidence, regarding the impacts of female leadership on firm’s corrupt level, is lack of studies in various research context. The objective of this study is to assess whether female managers impact negatively or positively on the corrupt behavior of family SMEs (household business) and nonfamily SMEs (Small and Medium-sized Enterprises). To do that, this paper used regressions, taken from a sample of 1,720 Vietnamese SMEs (based on the survey data of UNU-WIDER), to compare the impact of female percentage in management board in family and nonfamily businesses in reducing the level of corruption of the firms for the period 2011 to 2015.The findings indicated that first, drawing on socioemotional wealth theory and Vietnam context, family SMEs (household businesses) are more likely to engage in corruption. Second, we also found that female participant in management team can promote firms to be less involved in unethical practices such as bribe. However, the positive role of female managers in reducing corruption engagement is moderated by family control. We used upper echelon theory to suggest that female managers tend to have less managerial discretion in family-controlled organizations. This study has practical contributions, especially for policymakers and owners of household businesses.

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Dimension of corruption and firm performance: an empirical analysis from BEEPS survey

Cited by 7 publications

References 57 publications

Do Institutions Promote Firm Performance? Evidence from Sub-Saharan Africa

Do Institutions Promote Firm Performance? Evidence from Sub-Saharan Africa

Does bribing lead to extra convenience or is it a barrier to longitudinal growth? Empirical evidence from South American Firms

Female Managers and Corruption in SMEs: A Comparison Between Family and Nonfamily SMEs in Vietnam

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