Corruption level and uncertainty, FDI and domestic investment

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F21%3A00549390" target="_blank" >RIV/00216208:11640/21:00549390 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/67985998:_____/21:00553099 RIV/62156489:43110/21:43919912

Výsledek na webu

<a href="https://doi.org/10.1057/s41267-021-00447-w" target="_blank" >https://doi.org/10.1057/s41267-021-00447-w</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1057/s41267-021-00447-w" target="_blank" >10.1057/s41267-021-00447-w</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Corruption level and uncertainty, FDI and domestic investment

Popis výsledku v původním jazyce

Based on real options theory and institutional factors, we develop a theoretical framework for investment in the presence of corruption and use a sample of private firms in 13 European countries over 2001–2013 to carry out the first large-scale analysis of the impact of the level of corruption and uncertainty about corruption on post-entry investment of MNE subsidiaries. We employ several waves of managerial surveys (the Business Environment and Enterprise Performance Survey, BEEPS) to construct local- rather than merely country-level measures of corruption level and uncertainty. In combination with a large European firm-level database (Amadeus), we show that corruption uncertainty and corruption level do not have an effect on the investment of MNE subsidiaries. We next carry out the analysis on the sample of domestic firms and find a negative investment effect that is driven primarily by corruption uncertainty rather than corruption level. We also show that investment of domestic firms that are similar (matched) to MNE subsidiaries is unaffected directly by corruption, but is affected by uncertainties related to finances and judiciary. Our results are robust to controlling for various types of uncertainty, and they provide new insights into the effects of corruption on investment.

Název v anglickém jazyce

Corruption level and uncertainty, FDI and domestic investment

Popis výsledku anglicky

Based on real options theory and institutional factors, we develop a theoretical framework for investment in the presence of corruption and use a sample of private firms in 13 European countries over 2001–2013 to carry out the first large-scale analysis of the impact of the level of corruption and uncertainty about corruption on post-entry investment of MNE subsidiaries. We employ several waves of managerial surveys (the Business Environment and Enterprise Performance Survey, BEEPS) to construct local- rather than merely country-level measures of corruption level and uncertainty. In combination with a large European firm-level database (Amadeus), we show that corruption uncertainty and corruption level do not have an effect on the investment of MNE subsidiaries. We next carry out the analysis on the sample of domestic firms and find a negative investment effect that is driven primarily by corruption uncertainty rather than corruption level. We also show that investment of domestic firms that are similar (matched) to MNE subsidiaries is unaffected directly by corruption, but is affected by uncertainties related to finances and judiciary. Our results are robust to controlling for various types of uncertainty, and they provide new insights into the effects of corruption on investment.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

<a href="/cs/project/GA18-18509S" target="_blank" >GA18-18509S: Pyramidové vlastnické struktury v Evropě: Kapitálová struktura, daňové štíty, efektivita, kapitálové toky a sdílení rizika</a><br>

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2021

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Journal of International Business Studies

ISSN

0047-2506

e-ISSN

1478-6990

Svazek periodika

52

Číslo periodika v rámci svazku

9

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

25

Strana od-do

1750-1774

Kód UT WoS článku

000657350800001

EID výsledku v databázi Scopus

2-s2.0-85107296706