Ideological polarization and corporate lobbying activity: The contingent impact of corruption distance

Jeoung Yul Lee, Alfredo Jiménez, Seong-jin Choi and Yun Hyeong Choi

Journal of Business Research, 2022, vol. 141, issue C, 448-461

Abstract: This study examines how ideological polarization and corruption jointly impact MNEs’ lobbying decision-making. Building on resource dependence theory, we argue that the ideological polarization of the host country’s politics encourages MNEs to engage in lobbying. Furthermore, we suggest that this effect is strengthened by increased corruption distance between the home and host countries. Testing our hypotheses on a sample of 353 firms from 41 countries, we reveal that the host country’s political environment affects corporate lobbying activity, moderated by the corruption distance from the home country.

Keywords: Lobbying; Ideological polarization; Corruption distance; Corporate political activity (CPA); Resource dependence theory (RDT) (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:141:y:2022:i:c:p:448-461

DOI: 10.1016/j.jbusres.2021.11.047

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