The Impact of Anti-Corruption Policies on the Profitability and Growth of the Firms Listed in the Stock Market-Application on Singapore (Panel Data Analysis)

17 Pages Posted: 14 Apr 2017 Last revised: 23 Apr 2017

See all articles by Ahmed Badawi

Ahmed Badawi

American University of the Middle East (AUM)

Anas Al Qudah

Abu Dhabi University; Yarmouk University

Date Written: August 1, 2014

Abstract

The study uses panel data regression to examine the effect of corruption on firm profitability and growth in 392 listed firms in Singapore Stock Exchange for the period 1995 to 2013. We used 2 models; in the first model we measure the relation between corruption and profitability measured by net profit margin. Under this model we run 2 sub models; in the first we added only micro variables to corruption, in the second we incorporated macro and micro variables together. The second model we measure the relation between corruption and company growth measured by total asset growth. Under this model we run 2 sub models; in the first we added only micro variables to corruption, in the second we incorporated macro and micro variables together.

The main conclusion of this study is that anti-corruption policies that was conducted in Singapore over the period 1995 to 2013 resulted in better firms performance measured by net profit margin (1 point index improvement increases net profit margin by about 12.8%) and asset growth (1 point index improvement increases total asset growth by about 11.7%).

Keywords: corruption, firm profitability, firm growth

JEL Classification: G3, C5,

Suggested Citation

Badawi, Ahmed and AlQudah, Anas, The Impact of Anti-Corruption Policies on the Profitability and Growth of the Firms Listed in the Stock Market-Application on Singapore (Panel Data Analysis) (August 1, 2014). Available at SSRN: https://ssrn.com/abstract=2952730 or http://dx.doi.org/10.2139/ssrn.2952730

Ahmed Badawi

American University of the Middle East (AUM) ( email )

250 St.
Block 3, Building 1
Egaila
Kuwait

Anas AlQudah (Contact Author)

Abu Dhabi University ( email )

PO Box 59911
Abu Dhabi, Abu Dhabi 59911
United Arab Emirates

Yarmouk University ( email )

irbid, 21110
Jordan

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