IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v64y2023ics0275531922002148.html
   My bibliography  Save this article

Culture and bribe giving: Evidence from firm-level data

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531922002148
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ribaf.2022.101828?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ruohan Wu, 2018. "Does Competition Lead Firms to Bribery? A Firm-Level Study in Southeast Asia," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(1), pages 91-100, March.
    2. Xun Wu, 2009. "Determinants of Bribery in Asian Firms: Evidence from the World Business Environment Survey," Journal of Business Ethics, Springer, vol. 87(1), pages 75-88, June.
    3. Jakob Svensson, 2003. "Who Must Pay Bribes and How Much? Evidence from a Cross Section of Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 207-230.
    4. Cintra, Renato Fabiano & Cassol, Alessandra & Ribeiro, Ivano & de Carvalho, Antonio Oliveira, 2018. "Corruption and emerging markets: Systematic review of the most cited," Research in International Business and Finance, Elsevier, vol. 45(C), pages 607-619.
    5. Bryan W Husted, 1999. "Wealth, Culture, and Corruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(2), pages 339-359, June.
    6. Rajeev K. Goel, 2013. "Initiation of corrupt exchanges and severity of corruption," Financial Theory and Practice, Institute of Public Finance, vol. 37(2), pages 207-222.
    7. Licht, Amir N. & Goldschmidt, Chanan & Schwartz, Shalom H., 2007. "Culture rules: The foundations of the rule of law and other norms of governance," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 659-688, December.
    8. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    9. Ruohan Wu, 2016. "Why do firms bribe? An empirical study in BRICS economies from 2002 to 2012," Economics and Business Letters, Oviedo University Press, vol. 5(3), pages 72-79.
    10. Hauk, Esther & Saez-Marti, Maria, 2002. "On the Cultural Transmission of Corruption," Journal of Economic Theory, Elsevier, vol. 107(2), pages 311-335, December.
    11. Dendi Ramdani & Arjen Witteloostuijn, 2012. "The Shareholder–Manager Relationship and Its Impact on the Likelihood of Firm Bribery," Journal of Business Ethics, Springer, vol. 108(4), pages 495-507, July.
    12. Chandan Jha & Bibhudutta Panda, 2017. "Individualism and Corruption: A Cross-Country Analysis," Economic Papers, The Economic Society of Australia, vol. 36(1), pages 60-74, March.
    13. Banuri, Sheheryar & Eckel, Catherine, 2012. "Experiments in culture and corruption : a review," Policy Research Working Paper Series 6064, The World Bank.
    14. Hellman, Joel S. & Jones, Geraint & Kaufmann, Daniel, 2003. "Seize the state, seize the day: state capture and influence in transition economies," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 751-773, December.
    15. Monica Violeta Achim, 2016. "Cultural Dimension of Corruption: A Cross-Country Survey," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(3), pages 333-345, August.
    16. Gu, Junjian, 2022. "Do at home as Romans do? CEO overseas experience and financial misconduct risk of emerging market firms," Research in International Business and Finance, Elsevier, vol. 60(C).
    17. Kyunga Na & Young-Hee Kang & Yang Sok Kim, 2018. "The Effect of Corporate Governance on the Corruption of Firms in BRICs (Brazil, Russia, India & China)," Social Sciences, MDPI, vol. 7(6), pages 1-16, May.
    18. Riccardo Pelizzo & Eduardo Araral & Anton Pak & Wu Xun, 2016. "Determinants of Bribery: Theory and Evidence from Sub-Saharan Africa," African Development Review, African Development Bank, vol. 28(2), pages 229-240, June.
    19. Clarke, George R. G. & Xu, Lixin Colin, 2004. "Privatization, competition, and corruption: how characteristics of bribe takers and payers affect bribes to utilities," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2067-2097, August.
    20. Edward Asiedu, 2020. "Household services, social norms and bribe involvements? Evidence from Sub-Saharan Africa," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 19(2), pages 229-253, May.
    21. Gelbrich, Katja & Stedham, Yvonne & Gäthke, Daniel, 2016. "Cultural Discrepancy and National Corruption: Investigating the Difference between Cultural Values and Practices and Its Relationship to Corrupt Behavior," Business Ethics Quarterly, Cambridge University Press, vol. 26(2), pages 201-225, April.
    22. Agyenim Boateng & Yan Wang & Collins Ntim & Keith W. Glaister, 2021. "National culture, corporate governance and corruption: A cross‐country analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 3852-3874, July.
    23. Hamid Yeganeh, 2014. "Culture and corruption," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 13(1), pages 2-24, April.
    24. Sheheryar Banuri & Catherine Eckel, 2012. "Chapter 3 Experiments in Culture and Corruption: A Review," Research in Experimental Economics, in: New Advances in Experimental Research on Corruption, pages 51-76, Emerald Group Publishing Limited.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Noman Shaheer & Jingtao Yi & Sali Li & Liang Chen, 2019. "State-Owned Enterprises as Bribe Payers: The Role of Institutional Environment," Journal of Business Ethics, Springer, vol. 159(1), pages 221-238, September.
    2. Kyunga Na & Young-Hee Kang & Yang Sok Kim, 2018. "The Effect of Corporate Governance on the Corruption of Firms in BRICs (Brazil, Russia, India & China)," Social Sciences, MDPI, vol. 7(6), pages 1-16, May.
    3. Seung-Hyun Lee & Kyeungrae Oh & Lorraine Eden, 2010. "Why Do Firms Bribe?," Management International Review, Springer, vol. 50(6), pages 775-796, December.
    4. Agyenim Boateng & Yan Wang & Collins Ntim & Keith W. Glaister, 2021. "National culture, corporate governance and corruption: A cross‐country analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 3852-3874, July.
    5. Graafland, Johan & de Jong, Eelke, 2022. "The moderating role of culture on the benefits of economic freedom: Cross-country analysis," Journal of Comparative Economics, Elsevier, vol. 50(1), pages 280-292.
    6. Malesky, Edmund J. & Nguyen, Thang V. & Bach, Thang N. & Ho, Bao D., 2020. "The effect of market competition on bribery in emerging economies: An empirical analysis of Vietnamese firms," World Development, Elsevier, vol. 131(C).
    7. Liu, Tingting & Liu, Yu & Ullah, Barkat & Wei, Zuobao & Xu, Lixin Colin, 2021. "The dark side of transparency in developing countries: The link between financial reporting practices and corruption," Journal of Corporate Finance, Elsevier, vol. 66(C).
    8. Ekici, Ahmet & Önsel Ekici, Şule, 2021. "Understanding and managing complexity through Bayesian network approach: The case of bribery in business transactions," Journal of Business Research, Elsevier, vol. 129(C), pages 757-773.
    9. Lorenzo Caprio & Mara Faccio & John J. McConnell, 2013. "Sheltering Corporate Assets from Political Extraction," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 29(2), pages 332-354, April.
    10. Gaganis, Chrysovalantis & Leledakis, George & Pasiouras, Fotios & Pyrgiotakis, Emmanouil, 2021. "National culture of secrecy and stock price synchronicity: Cross-country evidence," MPRA Paper 105432, University Library of Munich, Germany.
    11. Chavis, Larry, 2013. "Social networks and bribery: The case of entrepreneurs in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 279-293.
    12. Antonio Estache & L. Wren-Lewis, 2008. "Towards a Theory of Regulation for Developing Countries: Following Laffont's Lead," Working Papers ECARES 2008_018, ULB -- Universite Libre de Bruxelles.
    13. Thuy Dieu Nguyen, 2020. "Does firm growth increase corruption? Evidence from an instrumental variable approach," Small Business Economics, Springer, vol. 55(1), pages 237-256, June.
    14. Kenny, Charles & Soreide, Tina, 2008. "Grand Corruption in Utilities," Policy Research Working Paper Series 4805, The World Bank.
    15. Juliane Markscheffel & Michael Plouffe, 2022. "Multilevel determinants of MNC corruption risk," Journal of International Business Policy, Palgrave Macmillan, vol. 5(4), pages 512-528, December.
    16. Ruohan Wu, 2018. "Does Competition Lead Firms to Bribery? A Firm-Level Study in Southeast Asia," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(1), pages 91-100, March.
    17. Dasgupta, Utteeyo & Radoniqi, Fatos, 2023. "Republic of beliefs: An experimental investigation✰," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 30-43.
    18. Liedong, Tahiru Azaaviele & Aghanya, Daniel & Jimenez, Alfredo & Rajwani, Tazeeb, 2023. "Corporate political activity and bribery in Africa: Do internet penetration and foreign ownership matter?," Journal of Business Research, Elsevier, vol. 154(C).
    19. Vu Thi Hong Nhung & Nguyen Thi Hong Huong, 2022. "Overview of bribery giving behaviors: Determinants and influence on firm performance," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 12(1), pages 84-91.
    20. Aaron Soans & Masato Abe, 2015. "Bribery, Corruption and Bureaucratic Hassle: Evidence from Myanmar," ARTNeT Working Papers 152, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:64:y:2023:i:c:s0275531922002148. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.