Effect of corruption on firm level innovation: Evidence from Pakistan

Imran, Syed Muhammad; Rehman, Hafeez ur; Khan, Rana Ejaz Ali

doi:10.17811/ebl.9.1.2020.41-47

Cited by 15 publications

(10 citation statements)

References 45 publications

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“…However, the 2019 findings show a more substantial negative impact of GIL on the efficiency of the non-exporting firms compared to the exporting ones. The GIL evidence is consistent with the findings of Lee and Weng (2013) and Imran et al (2019). Also, the EAS influence is generally more decisive for exporting relative to the non-exporting companies.…”

Section: Export Effects In the Efficiency Of Firms In Middle-income E...supporting

confidence: 88%

Quality standards, crime management and the efficiency of manufacturing firms in middle-income economies

Boamah

Ofori-Yeboah

Asare

2022

AJEB

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PurposeThis study investigates the ability of crime management expenses, recognised external quality certification and ownership structure to describe the cross-sectional changes in the capital and labour efficiencies of manufacturing firms in middle income economies. It controls for the potential effects of graft incidence and firm age on firm-level efficiency.Design/methodology/approachThe study adopts a state space model approach within the context of cross-sectional regressions. Data for the study are obtained from the World Bank Enterprise Survey for 2006, 2009, 2013, 2016 and 2019.FindingsThe study provides evidence that crime management expenses impact labour efficiency negatively. Also, its effect on capital efficiency is positive in 2019 and negative in 2013 and 2016 eras. Additionally, external auditor services and internationally recognised quality certification increase labour and capital efficiencies. Graft incidence exerts negative and positive effect on capital efficiency in the recent and earlier periods respectively. In addition, older firms tend to have higher labour efficiency, whilst younger firms have higher capital efficiency. There is evidence of firm size and export orientation effects in the drivers of efficiency.Originality/valuePolicies aimed at creating graft and crime-free business environment will enhance the efficiency and growth of firms' particularly for small firms. Also, the market rewards recognised quality assurance and good reputation.

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Section: Export Effects In the Efficiency Of Firms In Middle-income E...supporting

confidence: 88%

Quality standards, crime management and the efficiency of manufacturing firms in middle-income economies

Boamah

Ofori-Yeboah

Asare

2022

AJEB

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“…Firms may engage external auditors to satisfy regulatory requirements or outside investors but not necessarily to improve their internal structures and performance. The negative EEAS effect appears inconsistent with Imran et al . (2019) and Jusoh and Ahmad's (2013) evidence.…”

Section: Resultscontrasting

confidence: 93%

“…The negative CIND and CBREQ effects corroborate the findings of Sahakyan and Stiegert (2012) and Phan and Archer (2020). Also, the positive CIND and CBREQ influence agrees with Li and Liu's (2015) and Imran et al .’s (2019) evidence.…”

Section: Resultssupporting

confidence: 85%

Political environment, employee tenure security and firm performance in middle-income economies

Boamah

Ofori-Yeboah

Appiah

2023

JED

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PurposeThe study investigates the effect of political instability and employee tenure security on the performance of firms in middle-income economies (MIEs) after controlling for the influence of corruption, international quality certification, external auditor services and firm age. It examines whether ownership and sector effects matter in the explored relationships.Design/methodology/approachThe study adopts the generalized method of moments estimator and collects firm-level cross-sectional data from 77 MIEs.FindingsThe evidence shows that political uncertainty, employee tenure security and firm age negatively impact firm performance. Also, external quality assurance mainly improves firm performance. Additionally, foreign-owned firms benefit from corruption more than their domestic counterparts. Moreover, there are ownership and sector effects in the firm performance drivers.Practical implicationsThe findings suggest the need for MIE firm managers to implement policies and programs to improve permanent employees' efficiency, commitment and honesty. Policy makers and political actors must work toward a stable political environment in MIEs. The policy must also focus on at least minimizing corruption.Originality/valueThe study shows the contributions of employee tenure security, political instability and corruption to the performance of MIE firms. It documents sector and ownership effects in the factors influencing firm performance.

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“…It has been argued that corruption can induce competition, efficiency, and innovation among firms or in countries where institutions are ineffective. In other words, corruption “ greases the wheels ” (see, Dreher & Gassebner, 2013; Imran, Rehman, & Khan, 2020; Leff, 1964; Mendoza, Lim, & Lopez, 2015). Although the above is still subject to debate, it is beyond the focus of our study.…”

Section: Brief Review Of Literature On Ownership Structure Corruption and Firm Investmentmentioning

confidence: 99%

Ownership structure, corruption, and capital investment: Evidence from firms in selected Sub‐Saharan African countries

Okafor

Ede

Chijoke‐Mgbame

et al. 2021

Thunderbird Intl Bus Rev

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In this study, we investigate the relationship between ownership structure, corruption, and capital investments in firms operating in a selected sample of Sub‐Saharan Africa (SSA) countries. Using a sample of an unbalanced panel of firms over different time periods that ranged from 2003 to 2016, and estimating with the fixed effects technique, we find that foreign ownership and bribery payments have positive and negative effects, respectively, on the capital investment of firms. Furthermore, the marginal effects analysis reveals that the effects of ownership structure and bribery payments differ significantly across our selected sample of countries and across different firm sizes. Policy implications were deduced from the findings.

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Effect of corruption on firm level innovation: Evidence from Pakistan

Cited by 15 publications

References 45 publications

Quality standards, crime management and the efficiency of manufacturing firms in middle-income economies

Quality standards, crime management and the efficiency of manufacturing firms in middle-income economies

Political environment, employee tenure security and firm performance in middle-income economies

Ownership structure, corruption, and capital investment: Evidence from firms in selected Sub‐Saharan African countries

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