IDEAS home Printed from https://ideas.repec.org/a/kap/asiapa/v41y2024i2d10.1007_s10490-022-09868-z.html
   My bibliography  Save this article

CEO career horizon and corporate bribery: a strategic relationship perspective

Author

Listed:
  • Jiasi Fan

    (University of International Business and Economics)

  • Zhexiong Tao

    (University of International Business and Economics)

  • Jana Oehmichen

    (University of Mainz
    University of Groningen)

  • Hans Ees

    (University of Groningen)

Abstract

We investigate the impact of CEO career horizon on corporate bribery. Based upon the research on time horizon of corporate investments, we argue that bribery may be implemented as an investment in strategic relationships with long-term motivations in emerging markets and, for that matter, CEOs with longer career horizons rather than shorter career horizons are more likely to make bribery investments. Using a sample of 2,914 Chinese listed companies from 2010 to 2018, we find support for the argument. The finding challenges the long-held assumption that short-term oriented CEOs are prone to paying bribes. Further, we augment the research by expounding upon the way that state ownership moderates the relationship between CEO career horizon and firm bribery investment.

Suggested Citation

  • Jiasi Fan & Zhexiong Tao & Jana Oehmichen & Hans Ees, 2024. "CEO career horizon and corporate bribery: a strategic relationship perspective," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 701-717, June.
    • Handle: RePEc:kap:asiapa:v:41:y:2024:i:2:d:10.1007_s10490-022-09868-z
    DOI: 10.1007/s10490-022-09868-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10490-022-09868-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10490-022-09868-z?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. Jamie Collins & Klaus Uhlenbruck & Peter Rodriguez, 2009. "Why Firms Engage in Corruption: A Top Management Perspective," Journal of Business Ethics, Springer, vol. 87(1), pages 89-108, June.
    2. Addis Gedefaw Birhanu & Alfonso Gambardella & Giovanni Valentini, 2016. "Bribery and Investment : Firm-Level Evidence from Africa and Latin America," Post-Print hal-04041950, HAL.
    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    4. Siew-Boey Yeoh & Chee-Wooi Hooy, 2022. "CEO age and risk-taking of family business in Malaysia: The inverse S-curve relationship," Asia Pacific Journal of Management, Springer, vol. 39(1), pages 273-293, March.
    5. Addis G. Birhanu & Alfonso Gambardella & Giovanni Valentini, 2016. "Bribery and investment: Firm-level evidence from Africa and Latin America," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 1865-1877, September.
    6. Akie Iriyama & Rajiv Kishore & Debabrata Talukdar, 2016. "Playing dirty or building capability? Corruption and HR training as competitive actions to threats from informal and foreign firm rivals," Strategic Management Journal, Wiley Blackwell, vol. 37(10), pages 2152-2173, October.
    7. Jayant R. Kale & Ebru Reis & Anand Venkateswaran, 2009. "Rank‐Order Tournaments and Incentive Alignment: The Effect on Firm Performance," Journal of Finance, American Finance Association, vol. 64(3), pages 1479-1512, June.
    8. Hongbin Cai & Hanming Fang & Lixin Colin Xu, 2011. "Eat, Drink, Firms, Government: An Investigation of Corruption from the Entertainment and Travel Costs of Chinese Firms," Journal of Law and Economics, University of Chicago Press, vol. 54(1), pages 55-78.
    9. Joon Mahn Lee & Jung Chul Park & Timothy B. Folta, 2018. "CEO career horizon, corporate governance, and real options: The role of economic short‐termism," Strategic Management Journal, Wiley Blackwell, vol. 39(10), pages 2703-2725, October.
    10. Antia, Murad & Pantzalis, Christos & Park, Jung Chul, 2010. "CEO decision horizon and firm performance: An empirical investigation," Journal of Corporate Finance, Elsevier, vol. 16(3), pages 288-301, June.
    11. Luo, Yadong, 2005. "An Organizational Perspective of Corruption1," Management and Organization Review, Cambridge University Press, vol. 1(1), pages 119-154, March.
    12. Xuemei Xie & Guoyou Qi & Kevin Xiaoguo Zhu, 2019. "Corruption and New Product Innovation: Examining Firms’ Ethical Dilemmas in Transition Economies," Journal of Business Ethics, Springer, vol. 160(1), pages 107-125, November.
    13. 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.
    14. Lin, Justin Yifu & Cai, Fang & Li, Zhou, 1998. "Competition, Policy Burdens, and State-Owned Enterprise Reform," American Economic Review, American Economic Association, vol. 88(2), pages 422-427, May.
    15. Ziliang Deng & Jiayan Yan & Marc van Essen, 2018. "Heterogeneity of political connections and outward foreign direct investment," Post-Print hal-02312122, HAL.
    16. Jianjun Zhang & Christopher Marquis & Kunyuan Qiao, 2016. "Do Political Connections Buffer Firms from or Bind Firms to the Government? A Study of Corporate Charitable Donations of Chinese Firms," Organization Science, INFORMS, vol. 27(5), pages 1307-1324, October.
    17. Cao, Xiaping & Pan, Xiaofei & Qian, Meijun & Tian, Gary Gang, 2017. "Political capital and CEO entrenchment: Evidence from CEO turnover in Chinese non-SOEs," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 1-14.
    18. Won-Yong Oh & Young Kyun Chang & Zheng Cheng, 2016. "When CEO Career Horizon Problems Matter for Corporate Social Responsibility: The Moderating Roles of Industry-Level Discretion and Blockholder Ownership," Journal of Business Ethics, Springer, vol. 133(2), pages 279-291, January.
    19. Elie Matta & Paul W. Beamish, 2008. "The accentuated CEO career horizon problem: evidence from international acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 29(7), pages 683-700, July.
    20. Yan Li & Fiona Yao & David Ahlstrom, 2015. "The social dilemma of bribery in emerging economies: A dynamic model of emotion, social value, and institutional uncertainty," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 311-334, June.
    21. Barth, James R. & Lin, Chen & Lin, Ping & Song, Frank M., 2009. "Corruption in bank lending to firms: Cross-country micro evidence on the beneficial role of competition and information sharing," Journal of Financial Economics, Elsevier, vol. 91(3), pages 361-388, March.
    22. Deng, Ziliang & Yan, Jiayan & van Essen, Marc, 2018. "Heterogeneity of political connections and outward foreign direct investment," International Business Review, Elsevier, vol. 27(4), pages 893-903.
    23. Kini, Omesh & Williams, Ryan, 2012. "Tournament incentives, firm risk, and corporate policies," Journal of Financial Economics, Elsevier, vol. 103(2), pages 350-376.
    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. Shisong Jiang & Yijie Min, 2023. "The Ability and Willingness of Family Firms to Bribe: A Socioemotional Wealth Perspective," Journal of Business Ethics, Springer, vol. 184(1), pages 237-254, April.
    2. Jeong, Nara & Kim, Nari & Arthurs, Jonathan D., 2021. "The CEO’s tenure life cycle, corporate social responsibility and the moderating role of the CEO’s political orientation," Journal of Business Research, Elsevier, vol. 137(C), pages 464-474.
    3. Hailiang Zou & Yunfeng Lu & Guoyou Qi, 2023. "Does Pay Disparity within Top Management Teams Lead to Bribery Activity? The Moderation of Demographic Diversity," Sustainability, MDPI, vol. 15(4), pages 1-23, February.
    4. Daewoung Choi & Hyunju Shin & Kyoungmi Kim, 2023. "CEO’s Childhood Experience of Natural Disaster and CSR Activities," Journal of Business Ethics, Springer, vol. 188(2), pages 281-306, November.
    5. Michael A. Sartor & Paul W. Beamish, 2020. "Integration-oriented strategies, host market corruption and the likelihood of foreign subsidiary exit from emerging markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 414-431, April.
    6. Stepanova, A. & Podukhovich, D., 2023. "CEO decision-making horizon and R&D investments. Evidence from Russia," Journal of the New Economic Association, New Economic Association, vol. 59(2), pages 85-118.
    7. Mekhaimer, Mohamed & Abakah, Alex Annan & Ibrahim, Awad & Hussainey, Khaled, 2022. "Subordinate executives' horizon and firm policies," Journal of Corporate Finance, Elsevier, vol. 74(C).
    8. Zhou, Kevin Zheng & Wang, Kui & Xu, Dean & Xie, En, 2022. "Drinking poison to quench thirst: Does bribery foster firm performance in China?," Journal of Business Research, Elsevier, vol. 147(C), pages 505-517.
    9. Yaoqin Li & Xixiong Xu & Yushu Zhu & Mamiza Haq, 2021. "CEO decision horizon and corporate R&D investments: an explanation based on managerial myopia and risk aversion," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5141-5175, December.
    10. Dean A. Shepherd & Vinit Parida & Joakim Wincent, 2021. "Bribery from a micro, demand-side perspective," Small Business Economics, Springer, vol. 57(4), pages 1661-1680, December.
    11. Chomsorn Tangdenchai & Asda Chintakananda & George O. White, 2023. "Active and passive bribery’s impact on firm relational embeddedness: evidence from Thailand," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1773-1799, September.
    12. Xi Zhong & Ge Ren & XiaoJie Wu, 2024. "Corporate philanthropy and bribery as distinctive responses to economic policy uncertainty: Do state-owned and private firms differ?," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 641-677, June.
    13. Cao, Chunfang & Li, Xiaoyang & Xia, Changyuan, 2021. "The complicit role of local government authorities in corporate bribery: Evidence from a tax collection reform in China," China Economic Review, Elsevier, vol. 65(C).
    14. Shiyuan Liu & Jiang Du & Weike Zhang & Xiaoli Tian, 2021. "Opening the box of subsidies: which is more effective for innovation?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 421-449, September.
    15. Zhe Zhang & Xin Wang & Ming Jia, 2021. "Echoes of CEO Entrepreneurial Orientation: How and When CEO Entrepreneurial Orientation Influences Dual CSR Activities," Journal of Business Ethics, Springer, vol. 169(4), pages 609-629, April.
    16. Sajid Ullah & Farman Ullah Khan & Laura-Mariana Cismaș & Muhammad Usman & Andra Miculescu, 2022. "Do Tournament Incentives Matter for CEOs to Be Environmentally Responsible? Evidence from Chinese Listed Companies," IJERPH, MDPI, vol. 19(1), pages 1-20, January.
    17. Hoa Luong & Abeyratna Gunasekarage & Syed Shams, 2021. "CEO pay slice and acquisitions in Australia: the role of tournament incentives," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 18(5), pages 833-868, September.
    18. Liuyang Ren & Xi Zhong & Liangyong Wan, 2022. "Defending the shell: differential effects of delisting pressure on R&D intensity and bribery expenditure," Review of Managerial Science, Springer, vol. 16(5), pages 1437-1470, July.
    19. Yung, Kenneth & Cai, Qiuye & Li, Deqing Diane, 2023. "Greasing the wheels of irreversible investment: International evidence on the economic effects of corruption," Global Finance Journal, Elsevier, vol. 58(C).
    20. Qi, Guoyou & Zou, Hailiang & Xie, Xuemei & Meng, Xiaohua & Fan, Tijun & Cao, Yuanhe, 2020. "Obedience or escape: Examining the contingency influences of corruption on firm exports," Journal of Business Research, Elsevier, vol. 106(C), pages 261-272.

    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:kap:asiapa:v:41:y:2024:i:2:d:10.1007_s10490-022-09868-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.