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Are Manager-controlled Firms More Likely to Bribe than Shareholder-controlled Firms: A Cross-cultural Analysis

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  • Chen, Chung-wen
  • Cullen, John B.
  • Parboteeah, K. Praveen

Abstract

To examine the bribing behavior of firms, we developed a cross-level moderation model using agency theory at the firm level and anomie theory at the societal level to investigate the relationship between manager control of firms and firm bribery activity. The results of this cross-cultural analysis using a sample of 1,799 firms from 38 nations showed that at the firm level, manager-controlled firms (MCFs) have a higher propensity to bribe than shareholder-controlled firms. At the country level, bribery is higher in MCFs (relative to shareholder-controlled firms) in societies with a low level of institutional collectivism, a high level of uncertainty avoidance, economic change, and income inequality. Contrary to the hypothesis, the relationship between bribery and manager control is stronger rather than weaker in societies with press freedom. Implications for future research and practices are discussed.

Suggested Citation

  • Chen, Chung-wen & Cullen, John B. & Parboteeah, K. Praveen, 2015. "Are Manager-controlled Firms More Likely to Bribe than Shareholder-controlled Firms: A Cross-cultural Analysis," Management and Organization Review, Cambridge University Press, vol. 11(2), pages 343-365, June.
    • Handle: RePEc:cup:maorev:v:11:y:2015:i:02:p:343-365_00
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    Cited by:

    1. Zhi Tang & Sandra Rothenberg & Jintong Tang & Renhong Zhu & Hongxin Zhao, 2023. "Social stratification and the philanthropy engagement strategy: Evidence from Chinese entrepreneurial firms," Asia Pacific Journal of Management, Springer, vol. 40(4), pages 1579-1606, December.
    2. Aditya Simha & K. Praveen Parboteeah, 2020. "The Big 5 Personality Traits and Willingness to Justify Unethical Behavior—A Cross-National Examination," Journal of Business Ethics, Springer, vol. 167(3), pages 451-471, December.
    3. Ruohan Wu, 2018. "Does Competition Lead Firms to Bribery? A Firm-Level Study in Southeast Asia," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(1), pages 91-100, March.
    4. Bahoo, Salman & Alon, Ilan & Paltrinieri, Andrea, 2020. "Corruption in international business: A review and research agenda," International Business Review, Elsevier, vol. 29(4).
    5. Kristine Velasquez Tuliao & Chung-wen Chen, 2019. "Economy and Supervisors’ Ethical Values: Exploring the Mediating Role of Noneconomic Institutions in a Cross-National Test of Institutional Anomie Theory," Journal of Business Ethics, Springer, vol. 156(3), pages 823-838, May.
    6. Chung-wen Chen & Hsiu-Huei Yu & Kristine Velasquez Tuliao & Aditya Simha & Yi-Ying Chang, 2021. "Supervisors’ Value Orientations and Ethics: A Cross-National Analysis," Journal of Business Ethics, Springer, vol. 170(1), pages 167-180, April.
    7. Kim, Sahrok & Praveen Parboteeah, K. & Cullen, John B. & Jeong, Nara, 2022. "Social institutions approach to women’s firm ownership and firm bribery activity: A study of small-sized firms in emerging markets," Journal of Business Research, Elsevier, vol. 144(C), pages 1333-1349.

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