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Cultural and institutional interaction effects on firm bribery

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  • Piyaphan Changwatchai
  • Siwapong Dheera-aumpon

Abstract

Firm bribery can be influenced by culture and institutions. They may have both direct and indirect effects on firm bribery. The aim of the study, therefore, is to examine the interaction effects of culture and institutions on firm bribery. This study relies on data from the World Bank's Enterprise Surveys on firm bribery, Hofstede's cultural data, and the Worldwide Governance Indicators for institutional data. According to the findings, a country's level of power distance has a moderating effect on the negative relationship between firm bribery and some institutional factors, including government effectiveness as well as voice and accountability. To combat bribery, the government of a nation with a high power distance should focus on enhancing its service quality while also allowing for greater freedom of speech and free media.

Suggested Citation

  • Piyaphan Changwatchai & Siwapong Dheera-aumpon, 2024. "Cultural and institutional interaction effects on firm bribery," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 17(2/3), pages 212-220.
    • Handle: RePEc:ids:ijmefi:v:17:y:2024:i:2/3:p:212-220
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