Title
Corruption, national culture and corporate investment: European evidence
Date Issued
08 November 2022
Access level
metadata only access
Resource Type
journal article
Author(s)
Conrado Diego García-Gómez
Ender Demir
José María Díez-Esteban
Publisher(s)
Routledge
Abstract
In this paper, we provide further evidence about the influence of corruption on corporate investment. Using a large sample of the European region non-financial firms for the period 2011–2020, our results suggest that corruption in Europe negatively affects corporate investment, thus, supporting the ‘sanding the wheel' hypothesis. This relationship is moderated by all six dimensions of the national culture proposed by Hofstede. Using appropriate panel data methodology, namely GMM estimations, we find that a higher degree of uncertainty avoidance, power distance, masculinity, and indulgence exacerbate the adverse effects of corruption on corporate investment while a higher degree of long-term orientation and individualism alleviates this effect.
Volume
30
Issue
4
Language
English
OCDE Knowledge area
Negocios, Administración
Subjects
Source
The European Journal of Finance
ISSN of the container
1351-847X
1466-4364
Sponsor(s)
This work was supported by Hercule Programmes [grant number EU proposal 878513 Hercule III 2019 Legal Training and Studies, HERCULE-2019-LT-AG]; Spanish Ministry of Science and Innovation [grant number PID2020-114797GB-I00].
Sources of information:
Directorio de Producción Científica
Universidad ESAN