À繫¿¬±¸ Á¦ ±Ç È£ (2019³â 5¿ù)
Asian Review of Financial Research, Vol., No..
pp.732~760
pp.732~760
A Bribe and Corporate Performance : Causal Evidence from a Quasi-Natural Experiment
Jieun Im
Woojin Kim
We examine how bribes affect corporate performance using a quasi-natural identification strategy. Specifically, we exploit the 2016 enactment of the Improper Solicitation and Graft Act in Korea (also known as Kim Young-ran Act) which limits firms¡¯ bribery to public servants as an exogenous shock. We find that a firm¡¯s level of bribery activities, proxied by its entertainment-related expenses, has a negative impact on its performance. In particular, firms that cut down on these expenses following the law¡¯s enactment are found to exhibit a significant improvement in performance. Overall, our findings provide convincing evidence that bribery impairs firm performance.
Jieun Im
Woojin Kim
We examine how bribes affect corporate performance using a quasi-natural identification strategy. Specifically, we exploit the 2016 enactment of the Improper Solicitation and Graft Act in Korea (also known as Kim Young-ran Act) which limits firms¡¯ bribery to public servants as an exogenous shock. We find that a firm¡¯s level of bribery activities, proxied by its entertainment-related expenses, has a negative impact on its performance. In particular, firms that cut down on these expenses following the law¡¯s enactment are found to exhibit a significant improvement in performance. Overall, our findings provide convincing evidence that bribery impairs firm performance.