The Impact of Corruption on Firm Performance: Evidence from Pakistan

Public Policy and Administration Research, ISSN 2224-5731(Paper), ISSN 2225-0972(Online), Vol. 4, No. 9, 2014

6 Pages Posted: 27 Oct 2014

See all articles by Muhammad Sohail

Muhammad Sohail

Bahria University

Muhammad Arslan

Bahria University Alumnus; Lincoln University (NZ)

Rashid Zaman

Lincoln University New Zealand

Date Written: October 26, 2014

Abstract

The purpose of this study is to investigate the impact of bribery on firm performance and provides quantitative estimates of the impact of corruption on the performance of the firm. Impact of bribery is checked through the questionnaire which is distributed among 100 respondents. In theoretical framework, firm performance is dependent variable and bribery is independent variable. The correlation between firm performance and bribery which is measure in obtaining more government contracts in questioner and bribery which is measure as cost of obtaining the contracts is (r = -0.8012) having negative association between them. The size value of correlation is (r = -0.0074 & -0.0056) showing that the size is not important in bribery and have subsequently have no affect on firm performance. The value of R-Square in table 2 is close to 0.649 which indicate very well fit to data. It means that almost 65 % change is due to the response variable (bribery). F-test value is very significant in both table showing that the model is best fitted with the data. Sample size is one of the study limitation which could be removed in future research by enlarging sample size.

Keywords: Corruption, Bribery, Firm performance, Economic growth, Government contracts

Suggested Citation

Sohail, Muhammad and Arslan, Muhammad and Zaman, Rashid, The Impact of Corruption on Firm Performance: Evidence from Pakistan (October 26, 2014). Public Policy and Administration Research, ISSN 2224-5731(Paper), ISSN 2225-0972(Online), Vol. 4, No. 9, 2014. Available at SSRN: https://ssrn.com/abstract=2515045 or http://dx.doi.org/10.2139/ssrn.2515045

Muhammad Sohail

Bahria University ( email )

E.8 Shangrilla Road
Naval Complex
Islamabad, 44000
Pakistan

Muhammad Arslan (Contact Author)

Bahria University Alumnus ( email )

44000 Islamabad
Pakistan
+923317500173 (Phone)

HOME PAGE: http://www.muhammadarslan.info/

Lincoln University (NZ) ( email )

PO Box 85084
Ellesmere Junction Road/Springs Road
Lincoln, 7647
New Zealand

Rashid Zaman

Lincoln University New Zealand ( email )

Ellesmere Jct Rd, Lincoln 7647
Chrsitchurch, 7647
New Zealand

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