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The link between corruption and firm performance has received considerable critical attention. However, until now, far too little attention has been paid to different dimensions of corruption and their relationship with firm performance. The aim of this paper is, therefore, to examine the relationship between dimensions of corruption and firm productivity.

This paper uses the fifth wave of Business Environment and Enterprise Performance Survey, which is based on the survey questionnaire with senior managers of 16,566 randomly selected firms across 32 developing countries. Empirical analysis employs structural equation modeling (SEM) and instrumental variable two-stage least square (IV 2SLS) estimation techniques.

Our results revealed that political corruption and red tape have a positive relationship with firm productivity. We also found that perceived extent of bribe and corruption experience are positively related to the firm productivity.

Findings suggest that multifaceted dimensions of corruption exist. Therefore, policymakers should develop anticorruption measures by taking into account these dimensions. In addition, policymakers should focus on improving institutional quality by reforming laws and measures to detect and punish government officials.

So far only few studies have looked at the dimensions of corruption; therefore, this study seeks to examine the effect of different dimensions of corruption together on firm performance in postcommunist countries.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2019-0476

The purpose of this paper is twofold: first, to examine the link between behavioural and personality traits of firm representatives and bribery in the case study of Vietnam; second, to study whether corruption is associated to firm performance through managers’ personality traits.

This study uses novel data from micro, small and medium firms in Vietnam for investigating the relationship between behavioural and personality traits of representatives of firms and bribery. Stratified sampling method is employed to ensure an adequate number of firms in each province with different ownership types. Ordinary least squares and logistic estimation techniques are used in this analysis.

This paper finds that traits of risk loving and innovativeness are positively associated to the likelihood of paying bribe whereas managers’ internal locus of control is negatively related to the probability of paying bribe. This paper reveals that managers, who have risk loving characteristics and get engaged to bribe payments, are related to lower firm performances.

Despite the fact that this paper provides robust and statistically significant empirical analysis, results from this paper are constrained with use of cross-sectional survey data, which has been conducted in 2015. Although this paper can provide strong correlations, it does not establish causal linkages and one should therefore be careful in interpreting the observed patterns as causal impacts.

The role of managerial personality traits in corruption interactions has not yet been explicitly proposed and empirically investigated. This paper attempts to fill this void by examining the relationship between managerial traits and corruption tendencies among SMEs in Vietnam.

Using indices of bribe for 19 countries, this study examines the determinants of bribe paying in international business. There is a strong positive correlation between countries where bribe taking is highly prevalent and those countries that are most likely to offer bribes. The propensity to give bribes is determined by economic factors such as per capita income and degree of economic freedom in the country, cultural factors such as power distance and masculinity; and legal regulatory factors such as accounting and tax treatment of bribes. It appears that, to eliminate international bribery, the supply side needs to be addressed in addition to the demand for bribes.

The Foreign Corrupt Practices Act (FCPA) of 1977 and its amendment – the Trade and Competitive Act of 1988 – are unique not only in the history of the accounting and auditing profession, but also in international law. The Acts raised awareness of the need for efficient and adequate internal control systems to prevent illegal acts such as the bribery of foreign officials, political parties and governments to secure or maintain contracts overseas. Its uniqueness is also due to the fact that the USA is the first country to pioneer such a legislation that impacted foreign trade, international law and codes of ethics. The research traces the history of the FCPA before and after its enactment, the role played by the various branches of the United States Government – Congress, Department of Justice, Securities Exchange commission (SEC), Central Intelligence Agency (CIA) and the Internal Revenue Service (IRS); the contributions made by professional associations such as the American Institute of Certified Public Accountants (AICFA), the Institute of Internal Auditors (IIA), the American Bar Association (ABA); and, finally, the role played by various international organizations such as the United Nations (UN), the Organization for Economic Cooperation and Development (OECD), the World Trade Organization (WTO) and the International Federation of Accountants (IFAC). A cultural, ethical and legalistic background will give a better understanding of the FCPA as wll as the rationale for its controversy.

The side effects of disguised bribes are hidden by their apparent good consequences (as pseudo-gifts). The aim of the chapter is to unveil to what extent pseudo-gifts (as disguised bribes) could distort the cultural, social, and communicational functions of gift-giving practices. We will firstly describe how disguised bribes could be analyzed from a Sartrean perspective, given that Sartre’s notion of bad faith could help to better understand the three basic kinds of substantive loss which follow from disguised bribes: (a) the loss of commonalities (the cultural function of gift-giving as distorted by disguised bribes: Malinowski’s notion of culture): we will analyze the phenomenon of guanxi; (b) the loss of social bonds (the social function of gift-giving as distorted by disguised bribes: Durkheim’s notion of culture); (c) the loss of communicability, and the arising of an empty truth (the communicational function of gift-giving as distorted by disguised bribes: Jaspers’ notion of truth claims). Gift-giving practices are culturally rooted. This is the first level of analysis (surface). Seizing the social and moral function of gift-giving practices unveils the second level of analysis (beneath-the-surface). Describing the communicational function of gift-giving practices opens the door to the third level of analysis (exchanges of truth claims). Bribery is the distortion of those basic functions of gift-giving practices. We are then facing an empty truth (the communicational function of culture is distorted).

Any concept of disguised bribes must be empirically tested. The way the cultural, social and communication functions of gift-giving practices are distorted could vary from one culture to another. Future research could check how such distortions arise in given societal cultures. It could then distinguish the side effects of disguised bribes, either from a cultural viewpoint, or from social perspective, or even from a communicational pattern of reference. Unveiling the multiple ways of distorting gift-giving practices could help decision-makers to better understand the frontiers between bribery and gift-giving. Emphasizing the various functions of gift-giving practices, from a philosophical and sociological perspective, could allow business decision-makers to raise their ethical awareness.

This paper aims to examine whether the vigorous enforcement of anti‐bribery laws has had an impact on the propensity of firms to engage in bribe‐giving in international business.

A set of statistical analyses was performed on data – Bribe Payers Index, a measure of bribe‐giving – from four years spanning a nine‐year period to ascertain trends in bribe‐giving.

The results indicate that the perceived level of bribe‐giving by firms from the major exporting countries has been declining. This decline has occurred at a time when the enforcement of national anti‐bribery laws has been stepped up greatly and international treaties against bribe‐giving have been adopted and increasingly enforced.

A robust legal approach to curb bribe‐giving appears to have a general deterrent effect on the propensity of firms based in the countries studied to engage in bribe‐giving. Data availability is limited to about 20 countries.

International cooperation among law enforcement agencies anchored in national laws and international treaties provide an effective basis to successfully prosecute bribe‐giving in international business.

This study strongly suggests that enforcement of national laws against bribe‐giving, coupled with cooperation among national governments, can play a significant role in reducing the perceived level of bribe‐giving in international business.

This chapter critically surveys recent advances in the methodology of measuring corruption in the field. The issue of measurement is central in the corruption literature, and the choice of method can significantly influence our thinking about the determinants, the mechanics, and the impact of corruption on the economy. We provide a conceptual categorization of different methods of measuring corruption ranging from surveys to direct observation of bribe payments in the field, while discussing the methodological and conceptual advantages and disadvantages of each method. Finally, we highlight areas of complementarity across methods and discuss avenues for future research.

This paper seeks to examine the extent to which national cultural characteristics impact the propensity of firms based in the country to engage in bribery to gain advantages when conducting business overseas.

A set of statistical analyses – bivariate correlations and regression – was performed on data for five cultural variables and one economic variable for 30 countries to ascertain the relationship between these variables on a country's Bribe Payers Index, a measure of bribe giving.

The results indicate that firms from countries low on power distance or long‐term orientation, or high on individualism, are less likely to engage in bribe giving. However, when the level of economic development in the home country as measured by per capita income is included, the impact of cultural factors is muted considerably. Firms from high‐income countries are less likely to give bribes.

Richer countries are likely to have certain practices that create a business ethos where bribing is the exception, not the rule, in conducting business. The study is based on a one‐time sample of just 30 countries for which bribe‐giving data are available. The data culture is limited to the countries studied by Hofstede.

Bribery is less a cultural phenomenon; instead, it is bred in poverty and illustrative of business behavior occurring in a highly regulated and inward‐looking economy. As a country prospers and the domestic operating environment becomes more hygienic, it will have a salutary effect on the international behavior of the firms based in that country.

The study mediates the debate between cultural and economic determinism and provides empirical evidence that bribe‐giving is largely an expression of economic imperatives and not cultural predisposition.

The purpose of this paper is to explain why police corruption is rampant in Indonesia by analysing its perceived extent, causes and anti-corruption measures.

The paper relies on primary and secondary sources and survey data to analyse the perceived extent and causes of police corruption in Indonesia.

Police corruption is widespread in Indonesia because of the inadequate budget allocated to the police, police officers are paid low salaries and recruited and promoted on their ability to pay bribes instead of merit, corrupt police officers are not detected or punished and corrupt behaviour is tolerated by many Indonesians. Consequently, policy makers in Indonesia can only minimise police corruption if they have the political will and capacity to introduce appropriate reforms to address its five causes.

This paper will be useful to those scholars, policy makers and anti-corruption practitioners who are interested in learning about the extent and causes of police corruption in Indonesia and why efforts to curb it are ineffective.

The purpose of this paper is to study the extent and nature of police integrity in Armenia. It analyses police officer views about misconduct seriousness, appropriate and expected discipline, and willingness to report misconduct.

The respondents surveyed in this study are 468 Armenian police officers assigned to work in two large police departments, Yerevan and Lori. The overall response rate is 84 per cent. The respondents evaluated 11 hypothetical scenarios describing cases of police misconduct.

Although the majority of the respondents recognized and labelled the behaviour described in the scenarios as rule violating, a large proportion, in some cases even above 40 per cent, did not do so. The respondents’ evaluations of misconduct seriousness varied greatly across the scenarios. In only two scenarios, describing the acceptance of a bribe from a speeding motorist and the theft of a watch from a crime scene, the respondents thought that both the appropriate and expected discipline should and would be severe; in all of the other scenarios, the respondents expected and approved of either no discipline at all or quite lenient discipline. The code of silence appears to be strong among our respondents, protecting almost all behaviours described in the questionnaire. Unique to Armenia is the finding that the respondents estimated that they would subscribe to the code of silence to a larger extent than their fellow officers would.

Police officers included in the survey come from two police departments.

Police administrators interested in controlling the code of silence could apply the methodology used in this research to ascertain the extent and nature of the code beforehand. They could use the methodology to assess and compare the police officer perceptions of the discipline the agency is expected to mete out with the discipline meted out in actual cases and, if necessary, work on addressing the discrepancy between the perceptions and reality.

Although Armenia has been one of the former Soviet republics that purged the communist government even before the breakdown of the Soviet Union, the transition toward democracy has been troublesome and riddled with widespread accusations of various types of failures in police integrity. The methodology used in this research enables measurement of the nature and extent of police integrity at the present time and also, subsequently, monitoring and detection of the changes in police integrity, which is particularly relevant for a police agency in transition.