Who Benefits from Anti-Corruption Enforcement?

60 Pages Posted: 29 Jan 2021 Last revised: 25 Oct 2023

See all articles by Jim Goldman

Jim Goldman

University of Warwick - Warwick Business School

Stefan Zeume

University of Illinois at Urbana-Champaign

Date Written: October 23, 2023

Abstract

We study the effect of anti-bribery enforcement on unpunished firms. After enforcement, unpunished firms in non-OECD country-industries where violations of the Foreign Corrupt Practices Act took place experience significant increases in revenue (+6.6%), asset productivity (+5.2%), and profitability (+0.4 percentage points). These positive spillovers are driven by business group affiliates of foreign parents, productive parents, and parents with limited corruption exposure. We also document a decline in local industry corruption perceptions after enforcement. Together, these results are consistent with the notion that anti-bribery enforcement contributes to leveling the playing field for firms that are better at competing without bribe payments.

Keywords: business groups, competition, corruption, firm growth, Foreign Corrupt Practices Act

JEL Classification: G30, G38, K22

Suggested Citation

Goldman, Jim and Zeume, Stefan, Who Benefits from Anti-Corruption Enforcement? (October 23, 2023). Available at SSRN: https://ssrn.com/abstract=3745751 or http://dx.doi.org/10.2139/ssrn.3745751

Jim Goldman (Contact Author)

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom

Stefan Zeume

University of Illinois at Urbana-Champaign ( email )

1206 South Sixth Street
Champaign, IL 61820
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
495
Abstract Views
2,040
Rank
109,626
PlumX Metrics