Bribery, on-the-job training, and firm performance

Spyridon Boikos, Mehmet Pinar and Thanasis Stengos

Small Business Economics, 2023, vol. 60, issue 1, No 2, 37-58

Abstract: Abstract The previous literature has extensively examined the effect of firm-level bribery on firm performance but not through on-the-job training. This paper investigates the impact of paying bribes on the firm’s investment decisions in on-the-job training and offers mediating implications of corruption on firm performance. We empirically examine the relationship between bribery and on-the-job training using firm-level data from the World Bank Enterprise Surveys consisting of a sample of 94 developing countries with 20,601 firms. The findings show that bribery and on-the-job training intensity affects real annual sales growth rates negatively and positively, respectively. Furthermore, firms exposed to more bribery reduce their on-the-job training intensity. The results are robust to the different classifications of the firm’s size, different subsamples, and controls for the endogeneity of the on-the-job training and bribery.

Keywords: Corruption; Bribery; Firm performance; On-the-job training (search for similar items in EconPapers)
JEL-codes: D21 D22 D73 E24 L25 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11187-022-00633-6

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