Economic uncertainty and corruption: Evidence from public and private firms

Mansoor Afzali; Gonul Colak; Mengchuan Fu

doi:10.1016/j.jfs.2021.100936

Economic uncertainty and corruption: Evidence from public and private firms

Mansoor Afzali
, Gonul Colak^*
, Mengchuan Fu

^*Huvudförfattare för detta arbete

Fordham University

Forskningsoutput: Tidskriftsbidrag › Artikel › Vetenskaplig › Peer review

26 Citeringar (Scopus)

Sammanfattning

We study the influence of policy uncertainty on the moral behavior of firms. When facing uncertainty, managers perceive various socioeconomic obstacles as more severe and disruptive to their business. Using data from policy uncertainty spouts in 93 countries, we document that some firms engage in norm-deviant behavior by cheating on taxes and paying more bribes. While private firms prefer to cheat on taxes, public firms choose bribery as a favorite tool to “grease the wheels” during periods of uncertainty. Strong social capital (local trust and religiosity) breaks this link between uncertainty and corruption.

Originalspråk	Engelska
Artikelnummer	100936
Referentgranskad vetenskaplig tidskrift	Journal of Financial Stability
Volym	57
Antal sidor	21
ISSN	1572-3089
DOI	https://doi.org/10.1016/j.jfs.2021.100936
Status	Publicerad - 01.12.2021
MoE-publikationstyp	A1 Originalartikel i en vetenskaplig tidskrift

FN:s SDG:er

Detta resultat bidrar till följande hållbara utvecklingsmål:

SDG 8 – Anständiga arbetsvillkor och ekonomisk tillväxt
SDG 16 – Fredliga och inkluderande samhällen

Nyckelord

511 Nationalekonomi
517 Statsvetenskap

Åtkomst av dokument

10.1016/j.jfs.2021.100936Licens: CC BY

1-s2.0-S1572308921000954-mainPublicerad version, 1,35 MBLicens: CC BY

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abstract = "We study the influence of policy uncertainty on the moral behavior of firms. When facing uncertainty, managers perceive various socioeconomic obstacles as more severe and disruptive to their business. Using data from policy uncertainty spouts in 93 countries, we document that some firms engage in norm-deviant behavior by cheating on taxes and paying more bribes. While private firms prefer to cheat on taxes, public firms choose bribery as a favorite tool to “grease the wheels” during periods of uncertainty. Strong social capital (local trust and religiosity) breaks this link between uncertainty and corruption.",

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KW - trust

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KW - religiosity

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Economic uncertainty and corruption: Evidence from public and private firms

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FN:s SDG:er

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