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Local corruption and SME investment

Author

Listed:
  • Trinh, Quoc Dat
  • Tran, Quoc Trung
  • Le, Son Dai
  • Nguyen, Thi Phuong Dung

Abstract

Prior research shows that corruption negatively affects corporate investment in large firms. However, we posit that this effect may be opposite in the context of SMEs. This paper investigates the relationship between local corruption and SME investment in a transition economy. With a sample of 262,767 observations, we document that local corruption is positively related to both SME investment expenditure and investment efficiency.

Suggested Citation

  • Trinh, Quoc Dat & Tran, Quoc Trung & Le, Son Dai & Nguyen, Thi Phuong Dung, 2024. "Local corruption and SME investment," Finance Research Letters, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:finlet:v:65:y:2024:i:c:s154461232400669x
    DOI: 10.1016/j.frl.2024.105639
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    More about this item

    Keywords

    Corruption; SMEs; Investment; Vietnam; Emerging markets;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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