Culture and bribe giving: Evidence from firm-level data

Piyaphan Changwatchai and Siwapong Dheera-aumpon

Research in International Business and Finance, 2023, vol. 64, issue C

Abstract: Bribery is prevalent in many countries and may be affected by the national culture. This study aims to examine the relationship between culture and firm bribery. This study thus combines country-level data from Hofstede’s cultural dimensions and firm-level data from the Enterprise Surveys, resulting in a combined data set covering more than 40,000 firms in 45 countries. Using a probit model with a dummy dependent variable indicating firm bribery, this study finds that firm bribery is associated with two cultural dimensions. Specifically, a country’s level of power distance is positively associated with firm bribery, while the level of long-term orientation is negatively associated with it. The effects of these cultural dimensions are not only statistically significant, but also economically important.

Keywords: Bribery; Corruption; Long-term orientation; National culture; Power distance (search for similar items in EconPapers)
JEL-codes: D73 M14 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:64:y:2023:i:c:s0275531922002148

DOI: 10.1016/j.ribaf.2022.101828

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