Factors of corruption on the firm level

Abstract

What makes managers of firms to pay bribes? What factors influence it? We analyze factors affecting managerial decisions to pay bribes in order to understand why some firms pay bribes, while others do not. The conceptual framework of our study is based on the analysis of several approaches presented in the previous research papers. We combine those approaches, dividing corruption into two different types and building separate models for each of these types. After that, we test those models along with an overall corruption model on data from "EBRD-World bank Business Environment and Enterprise Performance Survey" (BEEPS) to decide if the separation is necessary. We find that treating corruption as a heterogeneous phenomenon is not preferable, but further research of the problem is needed, because the models built are rather insufficient and require an adjustment.