Foreign corporations and the culture of transparency: Evidence from Russian administrative data

Serguey Braguinsky and Sergey Mityakov

Journal of Financial Economics, 2015, vol. 117, issue 1, 139-164

Abstract: Firms from developed countries carry a culture of transparency in business transactions that is opposite to the culture of hiding and insider dealing in developing and transition economies. We employ Russian administrative data on reported earnings and market values of cars to measure wage misreporting for individual employees of domestic firms in Moscow. We show that closer ties to multinationals lead to improved transparency of wage reporting in private Russian companies. Employees located closest to movers from multinationals in the job quality space experience the largest gains in transparency. We find a robust correlation between wage misreporting and accounting fraud.

Keywords: Culture; Transparency; Foreign corporations; Diffusion; Foreign direct investment (search for similar items in EconPapers)
JEL-codes: K42 P37 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (25)

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Related works:
Working Paper: Foreign Corporations and the Culture of Transparency: Evidence from Russian Administrative Data (2012)
Chapter: Foreign Corporations and the Culture of Transparency: Evidence from Russian Administrative Data (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:117:y:2015:i:1:p:139-164

DOI: 10.1016/j.jfineco.2013.02.016

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