Corporate profitability and the global persistence of corruption
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F21%3A00542029" target="_blank" >RIV/00216208:11640/21:00542029 - isvavai.cz</a>
Alternative codes found
RIV/67985998:_____/21:00553116 RIV/62156489:43110/21:43919184
Result on the web
<a href="https://doi.org/10.1016/j.jcorpfin.2020.101855" target="_blank" >https://doi.org/10.1016/j.jcorpfin.2020.101855</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.jcorpfin.2020.101855" target="_blank" >10.1016/j.jcorpfin.2020.101855</a>
Alternative languages
Result language
angličtina
Original language name
Corporate profitability and the global persistence of corruption
Original language description
We examine the persistence of corporate corruption for a sample of privately-held firms from 12 Central and Eastern European countries from 2001 to 2015. Using publicly available information and stochastic frontier analysis, we create 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. In spite of corruption’s negative effects on a country’s economy, we conclude that it persists because of its ability to improve corporate profitability. We refer to this effect as the Corporate Advantage Hypothesis.n
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
<a href="/en/project/GA18-18509S" target="_blank" >GA18-18509S: Corporate pyramids in Europe: Capital structure, tax shields, efficiency, capital flows and risk distribution</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2021
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Corporate Finance
ISSN
0929-1199
e-ISSN
1872-6313
Volume of the periodical
66
Issue of the periodical within the volume
February
Country of publishing house
NL - THE KINGDOM OF THE NETHERLANDS
Number of pages
18
Pages from-to
101855
UT code for WoS article
000642445000023
EID of the result in the Scopus database
2-s2.0-85098992950