Název:
To bribe or not to bribe? Corruption uncertainty and corporate practices
Autoři:
Hanousek, Jan ; Shamshur, Anastasiya ; Trešl, Jiří Typ dokumentu: Výzkumné zprávy
Rok:
2017
Jazyk:
eng
Edice: CERGE-EI Working Paper Series, svazek: 597
Abstrakt: Using a large sample of private firms over the period from 2001 to 2013, we study the effect of corruption uncertainty on corporate investments and cash holdings. We find that a higher uncertainty about the level of corruption is associated with lower corporate investments and lower cash holdings. These results are sensitive to the ownership structure of a firm. Firms with no foreign majority ownership appear to be more sensitive to corruption-induced uncertainty than majority-controlled foreign firms. They significantly decrease their investments and cash holdings. We hypothesize that they move their cash off-balance-sheet to create cash reserves as the uncertainty of when, whom, and how much to bribe increases.
Klíčová slova:
corporate investment; corruption; uncertainty Číslo projektu: GA16-20451S (CEP) Poskytovatel projektu: GA ČR