Firm Competitiveness and Detection of Bribery
Harvard University - Harvard Business School
July 29, 2013
Harvard Business School Accounting & Management Unit Working Paper
Using survey data collected from senior corporate executives around the world I analyze how detection of bribery impacts firm competitiveness. The data suggest that the most significant impact is on employee morale, followed by business relations and reputation, and then regulatory relations. I find that who initiated the bribery act, how it was detected, and how the firm responded after detection are all associated with the impact on a firm’s reputation, business relations, regulatory relations, and employee morale. Internally initiated bribery from senior management is more likely to be associated with a significant impact on firm competitiveness. Bribery detected by the control systems of the firm is less likely to be associated with a significant impact on both business and regulatory relations. Finally, bribery cases where the initiator of the bribery is dismissed are less likely to be associated with a significant impact of firm competitiveness. These results shed light on which organizations’ competitiveness is more likely to be affected by the detection of bribery.
Number of Pages in PDF File: 27
Keywords: competitiveness, reputation, bribe, corruption, firm performance, employee morale, control systems
JEL Classification: M1, M2, M4, M5working papers series
Date posted: July 29, 2013 ; Last revised: January 31, 2014
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