IDEAS home Printed from
   My bibliography  Save this article

Corruption and firm performance: Evidence from Greek firms


  • Daphne Athanasouli


  • Antoine Goujard


  • Pantelis Sklias

    () (Department of Political Science and International Relations, University of Peloponnese, Greece)


This article investigates the relationship between corruption and firm performance in Greece using firm level data. Corruption is overall negatively associated with firm size and growth at the firm level. We focus on the effect of ‘administrative corruption’, whereby firms engage in corrupt practices and bribery of government officials. We contrast the firm experience of corruption and the contextual experience of corruption at the sectoral level and find that the latter, contextual corruption is more important. The contextual effect of corruption identifies the magnitude of systemic corruption in Greece, indicating the need for reforms in an institutional environment that allows corrupt practices. Furthermore, firms of different size appear differently affected by corruption. This suggests that firm engagement in corruption is heterogeneous. Using quantile regressions, small and medium firms display a higher engagement in corrupt practices. However, their performance is less correlated with corruption than that of large firms.

Suggested Citation

  • Daphne Athanasouli & Antoine Goujard & Pantelis Sklias, 2012. "Corruption and firm performance: Evidence from Greek firms," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 5(2), pages 43-67, August.
  • Handle: RePEc:tei:journl:v:5:y:2012:i:2:p:43-67

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Chuck C Y Kwok & Solomon Tadesse, 2006. "The MNC as an agent of change for host-country institutions: FDI and corruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 767-785, November.
    2. Alvaro Cuervo-Cazurra, 2006. "Who cares about corruption?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 807-822, November.
    3. Patrick Emerson, 2001. "Corruption and industrial dualism in less developed countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 11(1), pages 63-76.
    4. repec:hrv:faseco:30747160 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Ozlem KUTLU FURTUNA, 2016. "The Nexus between Discretionary Expenditures and Corruption: Industry Level Perspectives from BRIC and Turkey," Proceedings of Business and Management Conferences 4406932, International Institute of Social and Economic Sciences.
    2. Colin C. Williams & Abbi M. Kedir, 2016. "The Impacts Of Corruption On Firm Performance: Some Lessons From 40 African Countries," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-18, December.
    3. Missaoui, Ibtissem & Ben Rejeb, Jaleleddine, 2017. "Corruption, secteur bancaire et développement du marché boursier : cas des pays de la zone EURO
      [Corruption, the banking sector and the development of the stock market: the case of the countries of
      ," MPRA Paper 83620, University Library of Munich, Germany.
    4. Hasan Ayaydin & Pinar Hayaloglu, 2014. "The Effect of Corruption on Firm Growth: Evidence from Firms in Turkey," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(5), pages 607-624, May.
    5. Colin C. Williams & Alvaro Martinez-Perez, 2016. "Evaluating the impacts of corruption on firm performance in developing economies: an institutional perspective," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 16(4), pages 401-422.
    6. Yanos Zylberberg & Francesco Pappada, 2014. "Austerity plans and tax evasion : theory and evidence from Greece," 2014 Meeting Papers 1031, Society for Economic Dynamics.

    More about this item


    bribery; corruption; growth; firm size; Greece;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tei:journl:v:5:y:2012:i:2:p:43-67. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kostas Stergidis). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.