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Culture and bribe giving: Evidence from firm-level data

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  • Changwatchai, Piyaphan
  • Dheera-aumpon, Siwapong

Abstract

Bribery is prevalent in many countries and may be affected by the national culture. This study aims to examine the relationship between culture and firm bribery. This study thus combines country-level data from Hofstede’s cultural dimensions and firm-level data from the Enterprise Surveys, resulting in a combined data set covering more than 40,000 firms in 45 countries. Using a probit model with a dummy dependent variable indicating firm bribery, this study finds that firm bribery is associated with two cultural dimensions. Specifically, a country’s level of power distance is positively associated with firm bribery, while the level of long-term orientation is negatively associated with it. The effects of these cultural dimensions are not only statistically significant, but also economically important.

Suggested Citation

  • Changwatchai, Piyaphan & Dheera-aumpon, Siwapong, 2023. "Culture and bribe giving: Evidence from firm-level data," Research in International Business and Finance, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:riibaf:v:64:y:2023:i:c:s0275531922002148
    DOI: 10.1016/j.ribaf.2022.101828
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    More about this item

    Keywords

    Bribery; Corruption; Long-term orientation; National culture; Power distance;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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