Search

This paper aims to identify the main issues and drivers of sustainable corporate governance to prevent corruption and increase companies' profitability by drafting corporate organizational models, highlighting exploratory evidence from the corporate sample. This document is based on two phases. First, the analysis aims to understand any link between adopting an organization, management, and control model according to Legislative Decree 8 June 2001, no.—231 and company performance. The survey concerned a sample of companies operating in the construction sector. We have therefore tried to demonstrate whether the companies in possession of the so‐called "231 model" present higher profitability than the same companies in the industry, which, on the contrary, have decided not to adopt this model. Second, the content analysis research method is applied to the corporate organizational models that have adhered to drafting the documents on the sample of companies. It was investigated whether companies operating in the construction sector, which adopt an organizational model, have higher performances than companies which do not adopt an organizational model in line with the Italian Legislative Decree 231 and whether there is a correlation between the adoption of a "complete" organizational model in line with Italian Legislative Decree 231 and company performance. This paper proposes the analysis of the sustainable compliance models of Italian companies to prevent corruption and profitability in their corporate governance and the path for future research on the topic. [ABSTRACT FROM AUTHOR]

Using debt structure data from a large sample of US non-financial companies during the period 2002–2016 combined with the US Department of Justice (DOJ) data on local public corruption, we examine the effect of public corruption on the degree of debt concentration in a firm's debt structure. The results imply that firms in corrupt areas tend to use several debt types simultaneously, decreasing in that way debt concentration. These findings remain robust to tests that control for endogeneity. In further analysis, we show that these results are stronger for more informationally transparent firms, i.e. investment grade rated and publicly listed firms, that have easier access to capital debt markets. Lastly, in terms of debt choices, we find that firms in corrupt areas issue more commercial paper, senior bonds and capital leases, while they borrow less from banks. The study provides useful policy implications for combating corruption, as informationally opaque firms face increased barriers to debt financing. [ABSTRACT FROM AUTHOR]

We investigate how the cultural heritage of bank CEOs shapes the relationship between public corruption and the cost of syndicated loans in the US market. We show that banks led by CEOs that trace their origin in high uncertainty avoidance societies penalize less sharply in loan pricing the presence of high local public corruption in the state of the borrowing firms. We find some similar evidence for banks led by CEOs that trace their origin to more individualistic societies. These findings are consistent with the view that certain cultural traits prompt tolerance for the risks of corruption and show that the pricing of institutional quality in corporate loans is conditional on banks led by CEOs with such traits. [ABSTRACT FROM AUTHOR]

The UK Bribery Act (2010) and its failure to prevent the (FtP) model represent a novel approach to corporate accountability. This approach is gaining traction in other issue areas and jurisdictions as a mechanism to incentivise robust corporate compliance policies. Australia now has a comparable offence of Failure to Prevent Foreign Bribery and the model has also been applied to tax evasion and fraud in the UK. As such, the FtP model is developing into an important feature of the corporate accountability landscape. There have been suggestions that the FtP model should be expanded to address social and environmental harms resulting from transnational business practices and corporate liability for failure to prevent corruption is even being considered under international law, as part of an the effort to establish an International Anti-Corruption Court with jurisdiction over individuals and corporations. However, there remains limited empirical research documenting the actual impact of the FtP Bribery on corporate behaviour. This article remedies this gap in scholarship, providing novel insights by analysing for the first time the impact of the FtP bribery offence on publicly available annual reports. It establishes a foundation for further empirical research on the impact of the FtP model beyond reporting, to corporate practices and decision-making. [ABSTRACT FROM AUTHOR]

Environmental degradation poses a significant challenge globally, with Southeast Asia projected to face severe climate change impacts by 2050. This study investigates the influence of corporate anti-corruption commitment on environmental performance in ASEAN-5 countries (Indonesia, Singapore, Malaysia, Thailand, and the Philippines) from 2017-2022. Using data from 108 listed companies, the research examines how anticorruption policies affect environmental management, measured by the Environmental Pillar Score (ES), and the moderating role of board independence. Regression methods are employed to test the relationships between the independent variable, anti-corruption commitment, and the dependent variable, environmental performance, as well as to evaluate the moderating effect of board independence. Findings reveal a positive and significant impact of anti-corruption commitment on environmental performance, underscoring the necessity for companies to balance stakeholder contributions and business operations. Anti-corruption measures foster transparency and compliance with environmental regulations, preventing illegal practices that harm both companies and economic growth. However, board independence does not significantly influence this relationship, potentially due to insufficient professional competence and ineffective environmental governance. The study suggests that while independent boards are crucial for accountability, their role in environmental sustainability needs enhancement through targeted training programs. This research highlights the importance of ethical corporate practices and robust governance frameworks in achieving sustainable business operations and environmental protection in Southeast Asia. [ABSTRACT FROM AUTHOR]

This document is an introduction to a special issue of the European Journal on Criminal Policy & Research focused on understanding money laundering. The introduction highlights the lack of knowledge about how money laundering works in practice and the limited research on the behavior and choices of money laundering offenders. The special issue includes papers that examine the behavior of money laundering offenders from various perspectives, such as theoretical frameworks, empirical studies, and case analyses. The papers cover a range of topics, including the determinants of offender choices, the methods used by different offender groups, and the role of intermediaries in money laundering. The introduction emphasizes the need for more research in this field and the importance of adopting an offender's perspective to better understand money laundering practices. [Extracted from the article]

This paper investigates the relationship between economic policy uncertainty and corporate cash holdings using data from seven emerging countries for the 2010–2018 period. Empirical results show that firms tend to hold more cash when EPU is high. Moreover, this positive relationship is stronger in countries with better control of corruption and in high uncertainty avoidance cultures. Results are robust to different measures of cash holdings and EPU. [ABSTRACT FROM AUTHOR]

Scholarship on white-collar and corporate crime often notes that these crimes are complex due to their scale, longevity, and hidden, layered, and global nature. Embedded in these discursive descriptions is the assumption that complexity is unidimensional and operates solely in a linear fashion. Yet, corruption and transnational bribery are the results of a complex system that involves diverse actors interacting in dynamic environments, which can produce multiple classes of outcomes that may include different patterns of complexity in crime. In this paper, we empirically explore potential variability in patterns of complexity in transnational corporate bribery using official data from cases prosecuted under the Foreign Corrupt Practices Act in the United States. Our findings indicate that crime "complexity" can take different forms, suggesting that the relationship between variables can unfold in dynamic ways. Implications for theory and practice are discussed. [ABSTRACT FROM AUTHOR]

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In Indonesian law, both individuals and legal entities such as corporations are recognized as legal subjects. Corporations, which are governed by civil law, are now increasingly associated with crime, particularly Corporate Crime. Although initially disputed, it is now accepted that legal entities can be involved in criminal acts and that corporations should be held accountable for their unlawful actions. Corporate Crime encompasses situations where corporations break the law for their benefit, often in disregard of applicable regulations and norms. This development marks a shift in criminal law from targeting individuals to also holding corporations accountable. Therefore, principles such as Vicarious Liability and Strict Liability become the basis for establishing legal liability for corporations. These principles ensure that corporations are responsible for their actions, similar to the liability imposed on individuals. Since the legal construction in Perma RI No. 13 Year 2016 is different from individuals, corporations require specific legal principles to regulate their liability. Concepts such as Vicarious Liability, Strict Liability, and others become important pillars in imposing responsibility on corporations. Recognizing corporations as perpetrators of criminal acts shows the evolution of the legal system to adjust to the complexity of modern business practices and uphold justice in an ever-changing society. [ABSTRACT FROM AUTHOR]

Family businesses have distinct characteristics that differentiate them from other firms. Researchers must meticulously analyze issues, with a specific focus on the interplay of family business dynamics, considering this factor. The main objective of this research was to provide insight into the adverse effects of family companies, particularly how the power dynamics inside these organizations might enable corruption or fraud and how corporate governance can help in mitigating these phenomena. Specifically, family businesses can be investigated by considering unique characteristics such as ownership and control, generational dynamics, and corporate governance. To address the study topic, a bibliometric analysis was conducted using the R statistical programming language and the bibliometric tools Biblioshiny and VOSviewer. Data were obtained from the Scopus database and examined in documents. The lack of unbiased external evaluation, the ineffectiveness of internal audits, disputes between different generations, the dominance of family members, and the narrow extent of governance all contribute to the exacerbation of tensions that promote corruption inside family firms. Moreover, the findings indicate that CEO duality correlates with the occurrence of corruption and fraudulent activities, such as manipulating profits. Furthermore, the findings suggest a correlation between the qualities of the board and instances of corruption and bribery inside family firms. These factors also increase the probability of financial statement fraud. [ABSTRACT FROM AUTHOR]

Generally, several factors around the corporate world influence different nations technologically, socially, economically, and politically. Specifically, this paper focuses on the African continent's politics concerning corporate corruption, corporate governance, and ethical leadership. This study aims to critically reflect on and evaluate the significance of curbing and combating corruption, promoting governance and ethics in Africa, and furthering and practising those principles. It employed a case study research design with a random sampling approach. Secondary data was analysed using content analysis, incorporating a critical assessment of relevant in-depth literature reviews to attain the study objective. The study results revealed that: Unethical leaders succumb to corruption, causing Africa's corruption to spiral out of control. Ethical leaders, on the other hand, resist corruption; African leaders and authorities should take steps to fight corruption through ethics and governance; African corporations have become increasingly corrupt; corporate governance and ethical leadership have declined in Africa; African politicians have uncurbed power to advance their private gains, and finally, African leaders need to change their mindsets and cultures to achieve economic growth. This study emphasises and reiterates the importance of dealing effectively with corporate corruption and advancing governance and ethics to benefit the African population and the continent. It further provides a broad and deeper understanding of corruption, ethics, and governance. The conceptual, strategic model provided by this study may be selected and used by African leaders, authorities, boards of directors, shareholders, and Chief Executive Officers (CEOs), as a tool to address corruption in African organisations and institutions. [ABSTRACT FROM AUTHOR]

Objective - This paper systematically analyzes publications in the field of private-sector corruption. Methodology/Technique—We used bibliometric indicators and the VOSviewer software to identify metrics like annual publication trends, top productive countries, top subject area for this field, collaboration network, and co-citation analysis trend. Through a structured keyword search from the Scopus database from 1988 to 2024, 392 documents were identified. Findings - Results show that the number of publications was insignificant for the first 15 years of study and only rose significantly from 2003 onwards. The findings also show that publications in this field are produced in 70 countries, with the majority published in Western countries. Novelty - This article extensively reviews the current state of private sector corruption literature. It is beneficial to assist emerging researchers in recognizing and comprehending the most recent developments in this field by examining various countries, authors, and fields of study. [ABSTRACT FROM AUTHOR]

This research aims to analize the appointment of an ex-convict of corruption to be a Commissioner of BUMN and the subsidiary company of BUMN from a legal perspective and its implication for Good Corporate Governance Practices. The result showed that the appointment of an ex-convict of corruption to be a Commissioner of BUMN and the subsidiary company of BUMN is considered as a violation of law because it doesn’t fulfill the Integrity aspect. The violation of integrity showed that Good Corporate Governance is not fully materialized in a corporate practice, especially BUMN and the subsidiary company of BUMN. [ABSTRACT FROM AUTHOR]

I examine how investors' search for different types of information affects managers' reporting decisions. I distinguish investors' search for information about firm fundamentals ("fundamental search") from their search for information about managers' incentives ("incentive search"). Based on a parsimonious model of misreporting, I predict that fundamental search reduces the earnings response coefficient, which reduces managers' benefits from misreporting, resulting in less misreporting. In contrast, incentive search increases the earnings response coefficient, which increases the benefits from misreporting, resulting in more misreporting. I test these predictions using an empirical technique that classifies EDGAR downloads as fundamental search or incentive search. Consistent with my theoretical predictions, I find that fundamental (incentive) search is negatively (positively) related to the earnings response coefficients and intentional restatements. I confirm my findings in two distinct empirical settings where the costs of information search exogenously changed: the adoption of XBRL and the electronic filing mandate of Form 4s. Collectively, the results show that investors' information demand can shape managers' reporting decisions, and its effects can vary depending on the type of information investors search for. [ABSTRACT FROM AUTHOR]

Using misstatement data, we find that the distribution of detected fraud features a heavy tail. We propose a theoretical mechanism that explains such a relatively high frequency of extreme frauds. In our dynamic model, a manager manipulates earnings for personal gain. A monitor of uncertain quality can detect fraud and punish the manager. As the monitor fails to detect fraud, the manager's posterior belief about the monitor's effectiveness decreases. Over time, the manager's learning leads to a slippery slope, in which the size of frauds grows steeply, and to a power law for detected fraud. Empirical analyses corroborate the slippery slope and the learning channel. As a policy implication, we establish that a higher detection intensity can increase fraud by enabling the manager to identify an ineffective monitor more quickly. Further, nondetection of frauds below a materiality threshold, paired with a sufficiently steep punishment scheme, can prevent large frauds. [ABSTRACT FROM AUTHOR]

Drawing upon institutional theory, we investigate how companies react to coercive pressures which impose anti-corruption disclosure practices. We adopt the concept of change in the institutionalized field and investigate the impact of the natural experiment of the Non-Financial Reporting Directive (NFRD) implementation on a company's choice for disclosing its anti-corruption policy. We examine the relationship between firm linkages with the external environment, proxied by board independence and ownership dispersion, and anti-corruption disclosure. We use a sample of 72 companies listed on the Warsaw Stock Exchange over the period of 2015–2019 that were subject to the NFRD legislation. The evidence from the Tobit model shows that the linkages with the external environment differentiate company reactions to the implementation of the mandatory reporting legislation. In particular, greater company linkages via interdependent directors and ownership dispersion increase the scope of the anti-corruption disclosure in the post-NFRD period. Our study offers policy implications suggesting that corporate scrutiny and exposure to external constituencies may improve implementation of legislation into company practice and enhance anti-corruption disclosure. [ABSTRACT FROM AUTHOR]

We investigate the impact of CEO career horizon on corporate bribery. Based upon the research on time horizon of corporate investments, we argue that bribery may be implemented as an investment in strategic relationships with long-term motivations in emerging markets and, for that matter, CEOs with longer career horizons rather than shorter career horizons are more likely to make bribery investments. Using a sample of 2,914 Chinese listed companies from 2010 to 2018, we find support for the argument. The finding challenges the long-held assumption that short-term oriented CEOs are prone to paying bribes. Further, we augment the research by expounding upon the way that state ownership moderates the relationship between CEO career horizon and firm bribery investment. [ABSTRACT FROM AUTHOR]

Frequent changes in economic policy pose challenges to normal business production and operations. However, little is known about the non-market strategies adopted by firms in emerging economies, such as China, in response to economic policy uncertainty. This study proposes that firms in China respond to high levels of economic policy uncertainty by increasing philanthropic donations and bribery. In addition, this study argues that private firms and state-owned firms implement different strategies to cope with economic policy uncertainty. Specifically, the study suggests that state-owned enterprises (SOEs) are more likely, than non-SOEs, to respond to economic policy uncertainty by increasing corporate philanthropy, and less likely to respond by increasing expenditure on bribes. This study obtained empirical evidence to support these views, based on an analysis of a dataset of 2,904 listed Chinese firms from 2008 to 2019. [ABSTRACT FROM AUTHOR]

Copyright of AIS: Ars Iuris Salmanticensis is the property of Ediciones Universidad de Salamanca and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This study aims to investigate whether firms involved in a major corruption scandal, with broad ramifications across several emerging and advanced markets, design the content of their corporate codes of conduct to either improve corporate ethical standards and practices or merely manipulate the impression of stakeholders. Design/methodology/approach: This study adopts an impression management perspective. It uses content analysis techniques to examine the codes of conduct adopted by seven Brazilian engineering and construction multinationals accused of corruption. The analysis covered five major themes: (1) forms of corruption, (2) values or principles, (3) interested parties, (4) procedures and routines and (5) punitive action. Findings: The study provides detailed evidence that the codes of conduct adopted by these firms are mere artifices that aimed at meeting legal requirements but do not target the relevant corporate audience involved in grand corruption. At best, such a code may impede petty and bureaucratic corruption. Originality/value: This research contributes to improving the understanding of how Latin American multinationals adopted codes of conduct after a major scandal and how they failed—at least to some extent—to design codes complying with established corporate governance principles. It shows that management manipulated the impression of stakeholders by selectively adopting or omitting certain terms, examining or concealing various issues and addressing mainly petty crimes rather than grand corruption. It also identifies areas where Western ethical values conflict with established practices and cultural norms in Latin America. [ABSTRACT FROM AUTHOR]

Corruption enables private gains for public purposes, violates democracy, and incapacitates the majority of people. Though under-discussed, business or corporate corruption rather flourishes from governments' various omissions and commissions. The field-responses in several parts of West Bengal, India reveal that people have sound understanding of both business and government corruption, but their individual efforts are too inadequate in countering corruption. Still, such awareness; and people's continued interest in politics sets the context before collective capability: by non-violent means, people need to use the state's space for asserting empowerment and agency; and revitalize the regulatory agencies, as countervailing forces for strengthening democracy's space against corruption. [ABSTRACT FROM AUTHOR]

The literature about the influence of country corruption on corporate cash holdings is not conclusive as there are studies supporting both a positive and negative relationship. To better explain this relationship, our study introduces a corporate-level mediating variable, i.e. the company's willingness to fight bribery as part of its CSR policy. Using a sample of 1,075 listed firms from 21 European Union countries for the period 2008–2019 (7,771 firm-year observations), we find a partial mediating effect of the corporate anti-bribery policy on the relationship between country corruption and corporate cash holdings. On the one hand, according to the shielding argument, country corruption negatively influences corporate cash holdings. And, on the other hand, there is a mediating effect such that firms in corrupt countries adopt less tough anti-bribery policies and, instead, they reduce their cash holdings both to protect themselves from expropriation and to signal their limit on bribe payments. [ABSTRACT FROM AUTHOR]

In this paper, we provide further evidence about the influence of corruption on corporate investment. Using a large sample of the European region non-financial firms for the period 2011–2020, our results suggest that corruption in Europe negatively affects corporate investment, thus, supporting the 'sanding the wheel' hypothesis. This relationship is moderated by all six dimensions of the national culture proposed by Hofstede. Using appropriate panel data methodology, namely GMM estimations, we find that a higher degree of uncertainty avoidance, power distance, masculinity, and indulgence exacerbate the adverse effects of corruption on corporate investment while a higher degree of long-term orientation and individualism alleviates this effect. [ABSTRACT FROM AUTHOR]

Purpose: This paper builds upon managerial discretion literature to study the relationship between foreign ownership and bribery intensity. Design/methodology/approach: Building on World Bank's data of 9,386 firms from 125 countries over the period 2006–2018, this paper uses Tobit regression, ordered probit and logit models to empirically test the hypotheses. Findings: This paper finds that firms have higher bribery intensity when executives have a higher level of managerial discretion. Smaller firms with slack financial resources tend to bribe more when they face more government intervention, munificent and uncertain industrial environment. Originality/value: Extant corruption literature has addressed the effects of external institutional settings and internal corporate governance on bribery offering among multinational enterprises (MNEs). How much, and under what condition do top executives matter in bribery activities are yet to be answered. This paper integrates the concept of managerial discretion with corruption and bribery literature and offers a potential answer to the above question. In addition, prior corruption and bribery literature have primarily studied bribery through either micro- or macro-level analysis. This paper adopts multiple-level of analyses and elucidates the foreign ownership and bribery relationship from the organizational and industrial levels. [ABSTRACT FROM AUTHOR]

Both executive corruption and corporate innovation are important factors affecting corporate development. This paper explores the impact of executive corruption on corporate innovation and examines the mechanism of their effects from the perspective of financing constraints. It is found that executive corruption significantly inhibits corporate innovation in general. In addition, financing constraints act as a mediator between executive corruption and corporate innovation, i.e., executive corruption exacerbates the financing constraints faced by firms and affects the access to and allocation of corporate resources, thus leading to a decrease in corporate innovation inputs and outputs. Further, the inhibitory effect of executive corruption on firm innovation is more pronounced in firms with low quality internal controls, strong professional background of executives, low quality external audit, low shareholding of institutional investors, strong political affiliation, and state-owned enterprises. [ABSTRACT FROM AUTHOR]

Corporate governance receives considerable attention from various stakeholders due to the search for potential agents that cause threats to sound corporate management practices. The fall of Enron and Arthur Anderson was an eye opener toward the journey of long years of corporate scandals and corruption. The Sarbanes-Oxley Act of 2002, which includes various codes and guidelines, evolved as an immediate solution to the problem. Traditionally, accounting has become an integral part of managing corporate governance as it is central to generating financial information for various stakeholders. However, research attention, so far, centers around public accountants due to their universal legitimacy in performing public account attestation services. Management accountants can also play important roles in strengthening corporate governance by instilling sound management accounting practices in various corporate affairs where governance is under threat. This dimension is grossly ignored in the existing literature, narrowing the role of accounting in a broader spectrum of governance. Applying the integrative literature review method as an epistemological paradigm, this study undertakes a theoretical attempt to highlight the roles that management accountants can play in strengthening the governance of firms from both external and internal perspectives. The incremental contribution of the article is to enlarge the remit of corporate governance by aligning the functionalities of management accountants with the mainstream study of corporate governance. It opens further research agendas for academics, practitioners, regulators, and other stakeholders. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to investigate the relationship between corruption, corporate governance and sustainable development goals (SDGs) in Africa. Design/methodology/approach: The authors use panel data from 42 African countries over the period 2017–2020 and ordinary least square regression to test the research hypotheses. The authors also use alternative estimation techniques, including the fixed effect and random effect regressions and the generalized method of moment, to test the robustness of the results. Findings: The results indicate that corruption negatively affects sustainable development (SD), whereas the effect of corporate governance is positive and significant. In addition, the positive influence of corporate governance on SD is stronger for countries with high corruption prevalence. Practical implications: Policymakers may rely on the outcome of this study to formulate practical and implementable solutions around corruption and corporate governance that can help toward the achievement of the SDGs. Specifically, corporate governance mechanisms may be relied upon to achieve SD in countries with a high corruption prevalence. Social implications: The social implication of this paper is that it demonstrates the adverse impact of corruption, which is rife in most African countries. Understanding corruption and the SDGs relationship will promote discussion with overarching implications for developing countries. Overall, the findings can sensitize society to the harmful effects of corruption and the positive effects of good corporate governance. Originality/value: This paper contributes to literature and practice by demonstrating that corporate governance plays a significant role in the realization of national and global objectives such as the SDGs. This paper also provides novel evidence that corporate governance matters more in countries with a higher corruption incidence. [ABSTRACT FROM AUTHOR]

Corruption is considered a widespread plague in most countries. Human rights, economic development, and national security are just a few of the aspects affected by corruption. The emerging literature also shows that corruption is one of the main causes of environmental degradation (particularly among developing countries) and that the phenomenon is stronger in the case of multinational companies (MNCs) due to the necessary interaction between MNCs and the host market's public officials. In this scenario, corporate anti‐corruption programs may represent a key element to enhance social, economic, and environmental wellbeing. However, evidence relative to the effectiveness of anti‐corruption models are mixed showing that compliance structures are often window‐dressing mechanisms implemented by corporate management to mitigate the corporate liabilities associated with their employees' illegal behaviors, rather than the likelihood of criminal actions per se. Thus, a practical approach is needed to understand what are the main attributes that distinguish an effective compliance program from a formal/legal one. Using a single case study approach (Eni Group), this paper aims to identify the key traits to increase the effectiveness of a compliance program in detecting and preventing illegal behaviors. [ABSTRACT FROM AUTHOR]

The purpose of this research is to provide a valuable study about the development of literature on corruption prevention during the last decade suggesting the way for the future agenda. We collected documents with the aims to develop a structured literature review (SLR). We collected 113 documents adopting a not grey analysis. Our results shows two main research areas: (i) the corruption prevention understanding its features and using accounting and ethical activities in the business and government procurement and (ii) anticorruption measures, disclosure and behaviours as renewed tools to increase corporate governance sustainability and corporate social responsibility. This is the first time for proposing the SLR on corporate corruption preventions and renewed models directed to build an updated background and emerging issues. This paper is original because proposes for the first time the literature collection of corporate corruption prevention's models providing valuable insights, critique and definition for the future research. [ABSTRACT FROM AUTHOR]

This paper proposes a systematic literature review emphasising scholars' view on the impact of the adoption of blockchain technologies to fight corruption. Providing a deep understanding of the state of the art, the paper drafts implications and valuable insights to address future research. The connection of anticorruption policies and blockchain technologies has been investigated using Scopus database and ABS journal ranking. The importance assumed by anticorruption policies and the innovativeness of the blockchain technology, thanks to its characteristics of immutability, automatic timestamping and distributed architecture, needs to be investigated in an integrated perspective. This study provides for the first time a systematic connection among anticorruption practices and blockchain towards the lens of the business, management and accounting field, providing valuable implications, insights and emerging issues. [ABSTRACT FROM AUTHOR]

Purpose: Corporate corruption reporting (CCR) is an emerging issue of the corporation for measuring transparency, integrity and accountability to the stakeholders and society. The purpose of this paper is to examine the role of CCR and financial management responsibility regarding the issue of corruption control. Design/methodology/approach: To explore the influences of corruption disclosure, this study considers the keywords-based content analysis of the listed financial firms of the Dhaka Stock Exchange in Bangladesh for 2012–2016. The research considers stakeholders and theoretical legitimacy lens for discussing corporate corruption disclosure. This study identified 143 self-driven keywords by classifying, analyzing and selecting the appropriate large set of keywords from the prior literature. This study examines 247 firm-year observations of all financial firms in Bangladesh using secondary data sources. Findings: The results of the hierarchical regression analysis report that financial firms following Sharia principles have a negative and significant association with CCR, while Big4 has a positive and significant influence. Moreover, the interaction effect of Big4 on the relationship between Sharia principles and CCR is negative and insignificant. The findings reported that Islamic financial firms disclose less corruption information than conventional financial firms in Bangladesh. Practical implications: This study findings are expected to significantly impact corporate management and policymakers of developing and highly corrupted economies to enhance corporate accountability, transparency and reputation. The regulatory body can consider the findings to promulgate anti-corruption reporting rules and regulations. Originality/value: The authors believe the theoretical lens used to support the method and findings of this paper are unique and novel. [ABSTRACT FROM AUTHOR]

The impact of tax enforcement on innovation is examined in this research. This paper employs the merger of Local Tax Bureaus (LTBs) and State Tax Bureau (STB) in 2018 as an exogenous shock to stricter tax enforcement. We find that stricter tax enforcement can foster innovation within firms. A mechanism analysis shows that the enhancement in a firm's innovation is motivated by the increased governance level, that is constraining the bribery and violation behavior of managers, motivated by stricter tax enforcement. According to heterogeneity research, this effect is more significant in SOEs and firms with weaker internal governance (i.e., firms with weak internal control and less independent directors) and firms with poor external governance environment (i.e., firms with lower media attention). Overall, this study empirically examines how tax enforcement affects innovation, which is crucial for boosting productivity and promoting economic growth. [ABSTRACT FROM AUTHOR]

This study analyzes the relationship between the turnover of local officials and corporate social responsibility with the moderating role of the local corruption under the Chinese context. Using merged data from 2357 Chinese listed firms operated in 219 cities over the time period 2010 to 2018, corporate social responsibility (CSR) is deconstructed and re-estimated into optimal CSR and excessive CSR. It is found that city-level political turnover positively affects both types of CSR. Local corruption mitigates the positive political turnover-optimal CSR relationship while exerting no significant effect on the political turnover-excessive CSR relationship. These findings remain valid in various robustness settings. Our findings have important implications for practitioners and policymakers in understanding corporate policy making in an emerging market. [ABSTRACT FROM AUTHOR]

We examine whether and how collusive and coercive forms of corporate corruption influence firm value. Our identification strategy exploits (i) the exogenous criminal prosecutions of regional government officials as part of China's anti-corruption campaign as demand-side shocks and (ii) the unique reporting of entertainment and travel costs by Chinese firms as supply-side disclosure of corruption-related spending. Among firms for which corruption is likely to be perceived as collusive (coercive) by investors, we find that exposure to corruption-related political risk measured by abnormal entertainment and travel costs has a significantly negative (positive) relation with market reactions to the anti-corruption prosecutions. These findings are consistent with investors' anticipation of a future decline in potential benefits (costs) arising from rent-sharing collusion (rent-extracting coercion). We also find that the collusion (coercion) effect is more pronounced for firms in regions with greater government economic intervention (in industries with stronger business competition). Furthermore, we provide evidence that the ex ante market reactions corroborate with the direction of changes in ex post operating performance of firms. Overall, our results suggest that investors can recognize differences in the economic consequences between collusive and coercive corruption and that the disclosure of corruption-related spending could help investors assess a firm's exposure to corruption-related risk. [ABSTRACT FROM AUTHOR]

We add to recent calls for more research on corporate corruption and argue that entrepreneurship researchers need to pay more attention to entrepreneurs who engage in entrepreneurial activities that corrode institutions and undermine the rule of law: what we call corrupt entrepreneurship. We conceptualise corrupt entrepreneurs as individuals who simultaneously act as traditional entrepreneurs seeking out and exploiting opportunities to profit from institutional voids; as institutional entrepreneurs involved in the creation and maintenance of the institutional voids that they profit from; and as cultural entrepreneurs that draw on various cultural resources to legitimate themselves in the communities in which they operate in order to maintain community support for their activities. As an example, we discuss the Sicilian Mafia and briefly describe how the existence of an institutional void played a central role in the formation of the Sicilian Mafia, how it continues to profit from institutional voids, what it does to maintain the voids it profits from, and how it legitimises itself in the local community by helping members of the community mitigate problems caused by the institutional voids that they are complicit in creating and maintaining in the first place. Building on this discussion, we highlight important future directions for research on corrupt entrepreneurship. [ABSTRACT FROM AUTHOR]

The issue of criminalizing corruption crimes involving corporations has become a concern because, recently, the phenomenon of corruption in several cases has involved corporations that are not easily subject to criminal sanctions. This research aims to analyze the criminal liability for corporations as perpetrators of corruption crimes in the Indonesian legal system and the pattern of punishment for corporations that commit corruption crimes. This research method applies the normative juridical method with a qualitative analysis of secondary data. The results show that law enforcement officials who determine corporations as suspects in corruption crimes and punish them but have difficulty in ensnaring corporations. One of the causes is the incomplete provisions regarding corporations as legal subjects in the anticorruption law. In addition, investigators have difficulty finding evidence and determining the identity of corporate offenders. The pattern of punishment for corporations is to apply a cumulative-alternative punishment pattern aimed at the corporation and its management. For corporations, the type of punishment imposed is fines or economic punishment aimed at recovering losses due to corruption or administrative punishment such as revocation of business licenses, while for the management, the punishment imposed is imprisonment and fines. [ABSTRACT FROM AUTHOR]

Objective: To investigate the effect of political connections and corruption on corporate economic performance in firms convicted of corruption by the Securities and Exchange Commission under the Foreign Corrupt Practices Act (FCPA). Method: The sample consisted of 131 firms, with 138 convictions received between the passage of the FCPA in 1978 and 2019. The collected data were submitted to descriptive statistics, comparison of means and multiple linear regression. Main Results: Corporate economic performance was positively explained by a combination of political connections and corruption. Performance was observed to rise over time in firms engaged in such practices, with the highest performance in the year of the conviction. Relevance / Originality: Our study fills a gap in the literature by correlating, in integrated manner, political connections and corruption with corporate economic performance, and by providing a longitudinal analysis of economic performance in demonstrably corrupt firms. Theoretical / Methodological Contributions: The study contributes to the literature by harmonizing the constructs of political connections and corruption with Resource Dependence Theory. Our results are relevant to organizations, the State and stakeholders in general and may subsidize decisions and policies for the control of corruption and maintenance of covenants. Nevertheless, they also point to socioeconomic dysfunction as these practices are detrimental to the economy at organizational level and, hence, cannot be legitimized, regardless of the desired ends. [ABSTRACT FROM AUTHOR]

This article studies the innovation behavior of the Tunisian firms using the database collected by the World Bank Enterprise Surveys in 2020. The modeling strategy used allowed us to assess the adequacy of the main regression models and the robustness of the results. Besides the firms' characteristics, we highlight the role of institutions by considering the infrastructure and corruption that affect the firms' incentives to innovate. We show that the firm innovation is negatively related to the gifts or informal payments to public officials to gain advantages in the drafting of laws, decrees, regulations or other binding government decisions. Petty corruption, by officials at lower levels, can grease the wheels of innovation activities, speed up the procedures for obtaining the required administrative permits and "get things done", since the Tunisian economy is characterized by a relatively mediocre quality of governance. • Analysis of the effects of petty and grand corruption on the Tunisian firms' innovativeness. • Distinction between grand corruption and petty corruption and how they affect innovation. • Petty corruption can serve as a mechanism to overcome bureaucratic hurdles. • Grand corruption in the government system has a negative effect on firms' innovativeness. [ABSTRACT FROM AUTHOR]

The study analyses the relations and processes underpinning grand corruption in the health sector in Greece. Viewed from a systemic-structural perspective, corruption is examined as a phenomenon emerging from the interactions and interconnections between the organized structures of venture capital and the state apparatus. Applying an integrated theoretical model of state-corporate crime and drawing on extensive empirical qualitative research, this paper traces the processes of normalization and institutionalization of corruption within the context of social networks and organizations. It is argued that corruption is not a deviant response to a normal system but a normal response to a system fostering illicit practice in accordance with capitalist ethos, profiteering, and the distribution of economic resources. In this wide political economy context, existing power relations and structures within the health sector are being reproduced. [ABSTRACT FROM AUTHOR]

Research in signaling theory has recently begun to explore how audiences process signal sets and the incongruence across the signals within. However, prior studies have assumed homogenous compositions of signal sets, and thus unidimensional signal incongruence, although social evaluations tend to involve simultaneous processing of different dimensions. In this study, we examine audiences' responses to the interdimensional incongruence between capability and integrity signals, particularly by focusing on how the salience of positive capability signals aggravates investor reactions to organizational misconduct, a negative integrity signal. Using irregular financial restatements as the negative integrity signals and prior alliance announcements as the positive capability signals, we find that investors react more negatively to restatements by firms whose alliance announcements are more salient—that is, the firms that announce more frequently and firms that create more positive expectations from those announcements. We also find that firm size and level of diversification weaken these negative effects. We contribute to research on signaling theory, social evaluations, organizational misconduct, and alliances. [ABSTRACT FROM AUTHOR]

Multiple theories addressing firms' reactions to exchange partner misconduct coalesce to depict a trade-off. On the one hand, maintaining commitments to transgressors poses negative spillover risks, so theories posit firms are more likely to avoid such risks by ending commitments as negative spillover rises. On the other hand, exchange relationships often create embedded value, so theorizing also posits firms are more likely to avoid risking loss by maintaining commitments as relationships are more embedded. We argue this "maintain or end" choice oversimplifies a complex situation in which there are mixed gambles (i.e., choices offering both positive and negative outcomes). We integrate theorizing on mixed gambles and negative spillover to develop a broader conceptualization of alternative strategies for firms to reconcile these risk trade-offs beyond a binary "maintain or end" reaction, theorizing firms may: (a) increase or decrease commitments to transgressors, (b) hedge against risks by adding new partners while maintaining existing ones, or (c) "boomerang" by restarting exchange after previously ending commitments. Using firms' relationships with politicians accused of misconduct to test our arguments, findings support our theorizing. Collectively, we offer a more complete understanding of firms' reactions to exchange partner misconduct, extending theory and practical knowledge in multiple ways. [ABSTRACT FROM AUTHOR]

Scholars have found consistent evidence that directors who served on boards of firms accused of misconduct face reputational penalties in the director labor market. While commonly interpreted in terms of an "ex post settling-up" process that penalizes directors for failing in their role as monitors of management, the fundamentally social basis of the director labor market suggests that the ex post settling-up process may also incorporate a resource-provisioning role for directors as conferrers of legitimacy. We analyze how growing socioeconomic pressures that aim to redress the longstanding underrepresentation of female and ethnic minority directors may lessen, for these sought-after directors, the penalties typically imposed by the labor market in the aftermath of corporate misconduct. Using a rich proprietary data set on financial misconduct and directors' demographic characteristics, we find strong support for our hypotheses regarding a possible "reputational immunity" effect. We also provide supplementary analyses demonstrating the specific mechanisms underlying our predictions, and establishing the robustness of the results to a variety of alternative explanations. We discuss the implications of our theoretical perspective and empirical findings for future research on corporate governance, corporate misconduct, and the duality of minority status as it relates to discriminatory outcomes in modern labor markets. [ABSTRACT FROM AUTHOR]