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Is bread gained by deceit sweet to a man? Corruption and firm efficiency

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  • Hanousek, Jan
  • Shamshur, Anastasiya
  • Tresl, Jiri

Abstract

We study the effects of corruption on firm efficiency using a unique comprehensive dataset of private firms from 14 Central and Eastern European countries for the period from 2000 to 2013. We find that an environment characterized by a high level of corruption has an adverse effect on firm efficiency. This effect is amplified for firms with a lower propensity to behave corruptly, i.e. foreign-controlled firms and firms managed by female CEOs, while domestically-owned firms and firms with male CEOs are not penalized. At the same time, an environment characterized by considerable heterogeneity in perception of corruption is associated with an increase in firm efficiency. This effect is particularly strong for foreign firms from low-corruption countries, while no effect is observed for firms managed by female CEO.

Suggested Citation

  • Hanousek, Jan & Shamshur, Anastasiya & Tresl, Jiri, 2015. "Is bread gained by deceit sweet to a man? Corruption and firm efficiency," CEPR Discussion Papers 10951, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10951
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    Cited by:

    1. Allen, Franklin & Qian, Jun & Shen, Lin, 2018. "Corruption and Competition," CEPR Discussion Papers 13218, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Ceo; Efficiency; Corruption; Europe; Ownership structure; Panel data; Stochastic frontier;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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