State-Owned Enterprises as Bribe Payers: The Role of Institutional Environment
Noman Shaheer, Jingtao Yi, Sali Li, Liang Chen
Journal of Business Ethics | Springer Verlag | Published : 2019
Our paper draws attention to a neglected channel of corruption—the bribe payments by state-owned enterprises (SOEs). This is an important phenomenon as bribe payments by SOEs fruitlessly waste national resources, compromising public welfare and national prosperity. Using a large dataset of 30,249 firms from 50 countries, we show that, in general, SOEs are less likely to pay bribes for achieving organizational objectives owing to their political connectivity. However, in deteriorated institutional environments, SOEs may be subjected to potential managerial rent-seeking behaviors, which disproportionately increase SOE bribe propensity relative to privately owned enterprises. Specifically, our ..View full abstract
Awarded by National Natural Science Foundation of China
This study was funded by the National Natural Science Foundation of China (Grant No. 71373010).