This article explores micro- and macro-level variables that influence the incidence of bribery payouts by firms. A rich data set with information from 55 countries was utilized to achieve this objective. Results of logit regression models indicate that there are a number of micro- and macro-level factors that significantly affect the incidence of bribery payouts. This suggests that it is not only the characteristics of a firm but also the environment of doing business that affect the firm's bribery decision. The (...) results of this study provides information that may help firms develop strategies to reduce corruption in their respective industries and thereby improve their image of corporate social responsibility. The analysis also points to possible policy directions that governments could undertake in order to reduce the incidence of bribery in their country. (shrink)

While it is widely believed that bribery is ubiquitous among Asian firms, few studies have offered systematic evidence of such activities, and the dynamics of bribery in Asian firms have not been well understood. The research reported here used World Business Environment Survey data to examine some distinct characteristics of bribery in Asian firms and to empirically test 10 hypotheses on determinants of bribery. We find that firm characteristics such as firm size, growth rate, and corporate governance are important determinants (...) of bribery activities at the firm level, and that Asian firms are more likely to bribe when faced with fierce market competition, corrupted court systems, convoluted licensing requirements, nontransparent interpretation of laws and regulations, inefficient government service delivery, and high taxes. (shrink)

This article analyzes the attitudes of United States business professionals toward the issue of international bribery, and in particular, whether or not having a written code of ethics has an effect on these attitudes. A vignette relating to international bribery from a widely used survey instrument was employed in a nationwide survey of business professionals to gather information on ethical attitudes of respondents. Data were also collected on gender of respondents, whether or not respondents were self-employed, whether or not the (...) respondents' firms had a written code of ethics, and to what extent the respondents' firms generated revenues from international operations. Attitudes concerning whether or not international bribery is ever acceptable exhibited wide dispersion. Respondents from firms that have a written code of ethics were significantly less likely to find international bribery acceptable. Firms that generate revenues from international operations were significantly more likely to have a written code of ethics than were firms which did not generate revenues from international operations. Implications of the findings for business policy are discussed. (shrink)

Globalization has increased the need for managers (and future managers) to predict the potential for country corruption. This study examines the relationship between Hofstede''s cultural dimensions and how country corruption is perceived. Power distance, individualism and masculinity were found to explain a significant portion of the variance in perceived corruption. A significant portion of country''s risk, trade flow with U.S.A., foreign investment, and per capita income was explained by perceived corruption.

Based on evidence from press articles covering 39 corporate fraud cases that went public during the period 1992-2005, the objective of this article is to examine the role of managers' behavior in the commitment of the fraud. This study integrates the fraud triangle (FT) and the theory of planned behavior (TPB) to gain a better understanding of fraud cases. The results of the analysis suggest that personality traits appear to be a major fraud-risk factor. The analysis was further validated through (...) a quantitative analysis of keywords which confirmed that keywords associated with the attitudes/rationalizations component of the integrated theory were predominately found in fraud firms as opposed to a sample of control firms. The results of the study suggest that auditors should evaluate the ethics of management through the components of the TPB: the assessment of attitude, subjective norms, perceived behavioral control and moral obligation. Therefore, it is potentially important that the professional standards that are related to fraud detection strengthen the emphasis on managers' behavior that may be associated with unethical behavior. (shrink)

Globalization leads to cross-border business transactions between societies with very different norms and regulations regarding bribery. Bribery in international business transactions can be seen as a function of not only the demand for such bribes in different countries, but the supply, or willingness to provide bribes by multinational firms and their representatives. This study addresses the propensity of firms from 30 different countries to engage in international bribery. The study incorporates both domestic (economic development, culture, and domestic corruption in the (...) supplying country) and international factors (those countries’ patterns of trade and involvement in international accords) in explaining the willingness to bribe abroad. The propensity to provide bribes was the lowest when corruption was not tolerated in the multinational firms’ home countries, when the firms’ countries were signatories of the Organization for Economic Cooperation and Development (OECD) anti-bribery convention, and when those countries traded heavily with wealthier nations. Further, these findings are maintained when controlling for levels of economic development and cultural values in the supplying country. In terms of culture, firms from high power distance countries showed a somewhat greater propensity for providing bribes in transactions with less-developed nations. (shrink)

Local firms in their home countries often engage in behavior that constitutes corruption, at least through some cultural lenses. One such practice is bribery of public officials. This study uses multilevel theory to address the question of why bribery activity of this type differs among countries. We analyze responses from nearly 4,000 firms worldwide using hierarchical linear modeling to investigate cross-level predictions about bribery. Drawing from anomie theory, we find support for country-level cultural and institutional drivers of firm-level bribery. We (...) extend anomie theory by showing how firm-level pressures can encourage the supplying of bribes as a firm strategy. (shrink)