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Regulatory Context and Corruption

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  • Kamel Mellahi
  • Mehmet Demirbag
  • Geoffrey Wood

Abstract

We examine relationships between regulatory environment and government intervention in firms' decisions and corruption perception indexes (CPI). We draw from a large sample survey conducted by the World Bank on the impact of regulatory environment on firms' growth. The study also focuses on government interventions through regulations in firms' operational and strategic decisions. The study uses the World Business Environment Survey 1999-2000 database. Our findings indicate that whereas intervention in certain regulatory and decision areas increases the likelihood of deterioration of CPI for liberal market economies and coordinated market economies, in some cases intervention decreases the likelihood of CPI deterioration for transitional economies, particularly those are categorized as highly corrupt countries.

Suggested Citation

  • Kamel Mellahi & Mehmet Demirbag & Geoffrey Wood, 2012. "Regulatory Context and Corruption," International Studies of Management & Organization, Taylor & Francis Journals, vol. 42(3), pages 13-34, January.
    • Handle: RePEc:taf:mimoxx:v:42:y:2012:i:3:p:13-34
    DOI: 10.2753/IMO0020-8825420301
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    Cited by:

    1. Demirbag, Mehmet & Wood, Geoffrey & Makhmadshoev, Dilshod & Rymkevich, Olga, 2017. "Varieties of CSR: Institutions and Socially Responsible Behaviour," International Business Review, Elsevier, vol. 26(6), pages 1064-1074.
    2. Demirbag, Mehmet & McGuinnness, Martina & Wood, Geoffrey & Bayyurt, Nizamettin, 2015. "Context, law and reinvestment decisions: Why the transitional periphery differs from other post-state socialist economies," International Business Review, Elsevier, vol. 24(6), pages 955-965.
    3. Irina Ervits & Malgorzata Zmuda, 2018. "A cross-country comparison of the effects of institutions on internationally oriented innovation," Journal of International Entrepreneurship, Springer, vol. 16(4), pages 486-503, December.

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