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Financial Corporations’ performances and corruption indices around Europe 1996-2008

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  • Bellavite Pellegrini, Carlo
  • Pellegrini, Laura

Abstract

This paper is devoted to the increasingly relevant issue of corruption. Financial and economic literature has progressively focused its attention on the impact of corruption on the financial performances of listed companies, highlighting the existence of a negative relation between a Corruption Perception Index (CPI) and companies’ financial performances. Taking into account the performances of 311 intermediaries of the financial sector of 17 ountries belonging to both the Euro and the non-Euro area and listed without any interruption since 1996–2008, the analysis confirms that corruption affects corporations’ total investment returns.

Suggested Citation

  • Bellavite Pellegrini, Carlo & Pellegrini, Laura, 2013. "Financial Corporations’ performances and corruption indices around Europe 1996-2008," MPRA Paper 104653, University Library of Munich, Germany, revised 2013.
    • Handle: RePEc:pra:mprapa:104653
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    References listed on IDEAS

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    1. Fama, Eugene F & French, Kenneth R, 1992. "The Cross-Section of Expected Stock Returns," Journal of Finance, American Finance Association, vol. 47(2), pages 427-465, June.
    2. Bellavite Pellegrini, Carlo & Romelli, Davide & Sironi, Emiliano, 2011. "The impact of governance and productivity on stock returns in European industrial companies," MPRA Paper 104654, University Library of Munich, Germany, revised 2011.
    3. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 503-530.
    4. Duffee, Gregory R., 1995. "Stock returns and volatility A firm-level analysis," Journal of Financial Economics, Elsevier, vol. 37(3), pages 399-420, March.
    5. Stephen H. Penman & Scott A. Richardson & İrem Tuna, 2007. "The Book‐to‐Price Effect in Stock Returns: Accounting for Leverage," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 45(2), pages 427-467, May.
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    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance

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