The “grabbing hand” or the “helping hand” view of corruption: Evidence from bank foreign market entries

Andreas P. Petrou and Ioannis C. Thanos

Journal of World Business, 2014, vol. 49, issue 3, 444-454

Abstract: This study adopts a resource perspective to explore a non-linear relationship between corruption and two measures of bank foreign market commitment, the capital invested and the share of equity, on a sample of 131 bank entries in forty host countries. Our findings support a U-shaped relationship providing evidence of the “grabbing hand” view at low to moderate levels of corruption and, supporting the “helping hand” view at high levels of it. In addition, market-seeking motives are found to have a positive moderating effect on this relationship. This study contributes to the long-standing debate about the effects of corruption on FDI.

Keywords: Banking; Corruption; Foreign market commitment; Market-seeking; Liability of foreignness (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (18)

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DOI: 10.1016/j.jwb.2013.10.004

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