Revealing Corruption: Firm and Worker Level Evidence from Brazil

Mounu Prem, Emanuele Colonnelli, S Lagaras (), Jacopo Ponticelli and Margarita Tsoutsoura

No 18673, Documentos de Trabajo from Universidad del Rosario

Abstract: We study how the disclosure of corrupt practices affects firms and their employees. We construct novel firm-level measures of involvement in corrupt practices using randomized audits and public procurement suspensions in Brazil. On average, exposed firms grow larger after the audits. However, this result masks large heterogeneity depending on the degree of firm involvement in the corruption scheme. Using contract-, loan-, and worker- level data, we show that highly corrupt firms suffer after anti-corruption initiatives, while other exposed firms grow by changing their investment strategy when shifting away from doing business with the government.

Keywords: Corruption; Firms; Anti-corruption programs; Brazil (search for similar items in EconPapers)
JEL-codes: D72 D73 G38 H57 H83 K00 L22 O10 O43 (search for similar items in EconPapers)
Pages: 53
Date: 2021-01-25
New Economics Papers: this item is included in nep-acc, nep-dev, nep-law and nep-ore
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Related works:
Journal Article: Revealing corruption: Firm and worker level evidence from Brazil (2022)
Working Paper: Revealing Corruption: Firm and Worker Level Evidence from Brazil (2022)
Working Paper: Revealing Corruption: Firm and Worker Level Evidence from Brazil (2021)
Working Paper: Revealing Corruption: Firm and Worker Level Evidence from Brazil (2020)
Working Paper: Revealing Corruption: Firm and Worker Level Evidence from Brazil (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000092:018673

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