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Corporate investment in corrupt environments: the case of the BRICS countries

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  • Rania Missaoui

    (University of Sousse)

Abstract

This article examines the ambiguous effects of corruption on investment using three key measures: total investment, intangible assets, and working capital. Based on an empirical study of 1536 firms in BRICS countries over eight years (2010–2017) and applying the modified Euler equation, the results reveal that corruption can hurt growth by negatively impacting investments. However, some sectors and firms seem to demonstrate that, under certain conditions and in line with the grease-the-wheels theory, corruption can paradoxically stimulate investment by circumventing administrative obstacles.

Suggested Citation

  • Rania Missaoui, 2025. "Corporate investment in corrupt environments: the case of the BRICS countries," SN Business & Economics, Springer, vol. 5(10), pages 1-28, October.
    • Handle: RePEc:spr:snbeco:v:5:y:2025:i:10:d:10.1007_s43546-025-00910-y
    DOI: 10.1007/s43546-025-00910-y
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    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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