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The impact of international bribery on U.S. household stock investments

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  • Emre Kuvvet

    (Nova Southeastern University)

Abstract

We find that international bribery violations in U.S. firms reduce U.S. households’ stock market investments. Revelations of such violations in a state reduce households’ stock market participation, diminish the portion of total household stock holdings within the household’s total wealth, decrease the probability that households enter the stock markets, and increase the probability that households exit from the stock market. Our results suggest that morality might be the mechanism by which bribery violations affect local household stock investments.

Suggested Citation

  • Emre Kuvvet, 2019. "The impact of international bribery on U.S. household stock investments," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 43(2), pages 409-419, April.
    • Handle: RePEc:spr:jecfin:v:43:y:2019:i:2:d:10.1007_s12197-018-9462-x
    DOI: 10.1007/s12197-018-9462-x
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    Cited by:

    1. Ahmed, Walid M.A., 2020. "Corruption and equity market performance: International comparative evidence," Pacific-Basin Finance Journal, Elsevier, vol. 60(C).

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    More about this item

    Keywords

    Corruption; International bribery; Household stock investments;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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