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- W3112840804 abstract "Purpose This paper investigates the relationship between corruption and corporate risk-taking in emerging markets where corruption is considered as “public enemy number one.” Design/methodology/approach The study measures corruption based on Corruption Control Index annually published by World Bank and examines how corruption affects corporate risk-taking in emerging markets covered in MSCI Emerging Market Index. Findings With a sample of 75,338 observations from 8,326 firms across 20 emerging stock markets during the period 2005–2016, the author finds that corruption negatively affects corporate risk-taking. Robustness checks with a reduced sample without China and India, alternatives of corruption measures, various measures of risk-taking and Generalized method of moments (GMM) estimator also show consistent results. Moreover, additional analysis shows that information disclosure mitigates the effect of corruption on risk-taking. Originality/value The extant literature implies that corruption may decrease corporate risk-taking behavior through two channels including operational cost and debt financing cost." @default.
- W3112840804 created "2020-12-21" @default.
- W3112840804 creator A5004778510 @default.
- W3112840804 date "2020-12-15" @default.
- W3112840804 modified "2023-09-27" @default.
- W3112840804 title "Corruption and corporate risk-taking: evidence from emerging markets" @default.
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- W3112840804 doi "https://doi.org/10.1108/ijoem-08-2019-0602" @default.
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