Country corruption and corporate cash holdings: the mediating effect of firm’s anti-bribery policy

References

• Aidt, T. S. 2009. “Corruption, Institutions, and Economic Development.” Oxford Review of Economic Policy 25 (2): 271–291. doi:10.1093/oxrep/grp012.
   Web of Science ®Google Scholar
• Arellano, M., and S. Bond. 1991. “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.” Review of Economic Studies 58 (2): 277–297. doi:10.2307/2297968.
   Web of Science ®Google Scholar
• Bahoo, S., I. Alon, and A. Paltrinieri. 2020. “Corruption in International Business: A Review and Research Agenda.” International Business Review 29 (4): 101660. doi:10.1016/j.ibusrev.2019.101660.
   Web of Science ®Google Scholar
• Baker, S. R., N. Bloom, and S. J. Davis. 2016. “Measuring Economic Policy Uncertainty.” Quarterly Journal of Economics 131 (4): 1593–1636. doi:10.1093/qje/qjw024.
   Web of Science ®Google Scholar
• Bams, D., B. van der Kroft, and K. Maas. 2021. “Heterogeneous CSR Approaches, Corporate Social Performance and Corporate Financial Performance.” Corporate Social Performance and Corporate Financial Performance (August 17, 2021).
   Google Scholar
• Banerjee, A., S. Mullainathan, and R. Hanna. 2012. Corruption. Working Paper 17968. Cambridge: National Bureau of Economic Research.
   Google Scholar
• Barkemeyer, R., L. Preuss, and M. Ohana. 2018. “Developing Country Firms and the Challenge of Corruption: Do Company Commitments Mirror the Quality of National-Level Institutions?” Journal of Business Research 90: 26–39. doi:10.1016/j.jbusres.2018.04.025.
   Web of Science ®Google Scholar
• Baron, R. M., and D. A. Kenny. 1986. “The Moderator–Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations.” Journal of Personality and Social Psychology 51 (6): 1173–1182. doi:10.1037/0022-3514.51.6.1173.
   PubMed Web of Science ®Google Scholar
• Blundell, R., and S. Bond. 1998. “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models.” Journal of Econometrics 87 (1): 115–143. doi:10.1016/S0304-4076(98)00009-8.
   Web of Science ®Google Scholar
• Cai, H., H. Fang, and L. C. Xu. 2011. “Eat, Drink, Firms, Government: An Investigation of Corruption from the Entertainment and Travel Costs of Chinese Firms.” Journal of Law and Economics 54 (1): 55–78. doi:10.1086/651201.
   Web of Science ®Google Scholar
• Cai, W., F. Hu, F. Xu, and L. Zheng. 2022. “Anti-Corruption Campaign and Corporate Cash Holdings: Evidence from China.” Emerging Markets Review, 100843. doi:10.1016/j.ememar.2021.100843.
   Web of Science ®Google Scholar
• Campbell, J. L. 2007. “Why Would Corporations Behave in Socially Responsible Ways? An Institutional Theory of Corporate Social Responsibility.” Academy of Management Review 32 (3): 946–967. doi:10.5465/amr.2007.25275684.
   Web of Science ®Google Scholar
• Caprio, L., M. Faccio, and J. J. McConnell. 2013. “Sheltering Corporate Assets from Political Extraction.” Journal of Law, Economics, & Organization 29 (2): 332–354. doi:10.1093/jleo/ewr018.
   Web of Science ®Google Scholar
• Chadee, D., B. Roxas, and A. Kouznetsov. 2021. “Corruption, Bribery and Innovation in CEE: Where is the Link?” Journal of Business Ethics 174 (4): 747–762. doi:10.1007/s10551-021-04925-x.
   Web of Science ®Google Scholar
• Chen, N. 2011. “Securities Laws, Control of Corruption, and Corporate Liquidity: International Evidence.” Corporate Governance: An International Review 19 (1): 3–24. doi:10.1111/j.1467-8683.2010.00823.x.
   Web of Science ®Google Scholar
• Chen, N., and T. C. Yang. 2017. “Democracy, Rule of Law, and Corporate Governance – a Liquidity Perspective.” Economics of Governance 18 (1): 35–70. doi:10.1007/s10101-016-0182-4.
   Web of Science ®Google Scholar
• De la Croix, D., and C. Delavallade. 2011. “Democracy, Rule of Law, Corruption Incentives, and Growth.” Journal of Public Economic Theory 13 (2): 155–187. doi:10.1111/j.1467-9779.2011.01497.x.
   Web of Science ®Google Scholar
• Demir, E., and O. Ersan. 2017. “Economic Policy Uncertainty and Cash Holdings: Evidence from BRIC Countries.” Emerging Markets Review 33: 189–200. doi:10.1016/j.ememar.2017.08.001.
   Web of Science ®Google Scholar
• de Oliveira, J. A. P. 2006. “Corporate Citizenship in Latin America.” Journal of Corporate Citizenship 21 (1): 17–20. doi:10.9774/GLEAF.4700.2006.sp.00003.
   Google Scholar
• Dittmar, A., J. Mahrt-Smith, and H. Servaes. 2003. “International Corporate Governance and Corporate Cash Holdings.” Journal of Financial and Quantitative Analysis 38 (1): 111–133. doi:10.2307/4126766.
   Web of Science ®Google Scholar
• Duong, H. N., J. H. Nguyen, M. Nguyen, and S. G. Rhee. 2020. “Navigating Through Economic Policy Uncertainty: The Role of Corporate Cash Holdings.” Journal of Corporate Finance 62: 101607. doi:10.1016/j.jcorpfin.2020.101607.
   Web of Science ®Google Scholar
• EU Anti-corruption Report. 2014. Report from the Commission to the Council and the European Parliament. Brussels: European Commission. 3.2.2014. COM(2014) 38 final. https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex%3A52014DC0038.
   Google Scholar
• European Commission. 2022. “Eurobarometer. Corruption.” July. https://europa.eu/eurobarometer/surveys/detail/2658.
   Google Scholar
• Favotto, A., K. Kollman, and P. Bernhagen. 2016. “Engaging Firms: The Global Organisational Field for Corporate Social Responsibility and National Varieties of Capitalism.” Policy and Society 35 (1): 13–27. doi:10.1016/j.polsoc.2015.12.003.
   Web of Science ®Google Scholar
• Ferreira, M. A., and A. S. Vilela. 2004. “Why Do Firms Hold Cash? Evidence from EMU Countries.” European Financial Management 10 (2): 295–319. doi:10.1111/j.1354-7798.2004.00251.x.
   Google Scholar
• Francis, B., I. Hasan, L. Liu, Q. Wu, and Y. Zhao. 2021. “Financial Analysts' Career Concerns and the Cost of Private Debt.” Journal of Corporate Finance 67: 101868. doi:10.1016/j.jcorpfin.2020.101868.
   Web of Science ®Google Scholar
• Gjølberg, M. 2010. “Varieties of Corporate Social Responsibility (CSR): CSR meets the ‘Nordic Model’.” Regulation & Governance 4 (2): 203–229. doi:10.1111/j.1748-5991.2010.01080.x.
   Web of Science ®Google Scholar
• Gogineni, A., R. Alsup, and D. F. Gillespie. 1995. “Mediation and Moderation in Social Work Research.” Social Work Research 19 (1): 57–63. https://www.jstor.org/stable/42659919.
   PubMed Web of Science ®Google Scholar
• Gründler, K., and N. Potrafke. 2019. “Corruption and Economic Growth: New Empirical Evidence.” European Journal of Political Economy 60: 101810. doi:10.1016/j.ejpoleco.2019.08.001.
   Web of Science ®Google Scholar
• Harford, J., S. A. Mansi, and W. F. Maxwell. 2008. “Corporate Governance and Firm Cash Holdings in the US.” Journal of Financial Economics 87 (3): 535–555. doi:10.1016/j.jfineco.2007.04.002.
   Web of Science ®Google Scholar
• Hoxhaj, A. 2019. The EU Anti-Corruption Report: A Reflexive Governance Approach. London: Routledge.
   Google Scholar
• Hu, H., Y. Lian, and W. Zhou. 2019. “Do Local Protestant Values Affect Corporate Cash Holdings?” Journal of Business Ethics 154 (1): 147–166. doi:10.1007/s10551-017-3462-1.
   Web of Science ®Google Scholar
• Ioannou, I., and G. Serafeim. 2012. “What Drives Corporate Social Performance? The Role of Nation-Level Institutions.” Journal of International Business Studies 43 (9): 834–864. doi:10.1057/jibs.2012.26.
   Web of Science ®Google Scholar
• Jackson, G., and A. Apostolakou. 2010. “Corporate Social Responsibility in Western Europe: An Institutional Mirror or Substitute?” Journal of Business Ethics 94 (3): 371–394. doi:10.1007/s10551-009-0269-8.
   Web of Science ®Google Scholar
• James, L. R., and J. M. Brett. 1984. “Mediators, Moderators, and Tests for Mediation.” Journal of Applied Psychology 69 (2): 307–321. doi:10.1037/0021-9010.69.2.307.
   Web of Science ®Google Scholar
• Joseph, A., C. Kneer, and N. van Horen. 2021. “All You Need Is Cash: Corporate Cash Holdings and Investment after the Global Financial Crisis.” https://ssrn.com/abstract=3592376.
   Google Scholar
• Kaufmann, D., A. Kraay, and M. Mastruzzi. 2011. “The Worldwide Governance Indicators: Methodology and Analytical Issues.” Hague Journal on the Rule of Law 3 (2): 220–246. doi:10.1017/S1876404511200046.
   Web of Science ®Google Scholar
• Kaufmann, D., and S. J. Wei. 1999. Does ‘Grease Money’ Speed Up the Wheels of Commerce? Working Paper 7093. Cambridge: National Bureau of Economic Research.
   Google Scholar
• Kinderman, D. P., and M. Lutter. 2018. “Explaining the Growth of CSR Within OECD Countries: The Role of Institutional Legitimacy in Resolving the Institutional Mirror vs. Substitute Debate.” Substitute Debate, March 12.
   Google Scholar
• Koos, S. 2012. “The Institutional Embeddedness of Social Responsibility: A Multilevel Analysis of Smaller Firms’ Civic Engagement in Western Europe.” Socio-Economic Review 10 (1): 135–162. doi:10.1093/ser/mwr027.
   Web of Science ®Google Scholar
• La Rocca, M., D. R. Cambrea, and A. Cariola. 2017. “The Role of Corruption in Shaping the Value of Holding Cash.” Finance Research Letters 20: 104–108. doi:10.1016/j.frl.2016.09.014.
   Web of Science ®Google Scholar
• Matten, D., and J. Moon. 2008. “‘Implicit’ and ‘Explicit’ CSR: A Conceptual Framework for a Comparative Understanding of Corporate Social Responsibility.” Academy of Management Review 33 (2): 404–424. doi:10.5465/amr.2008.31193458.
   Web of Science ®Google Scholar
• Mauro, P. 1995. “Corruption and Growth.” Quarterly Journal of Economics 110 (3): 681–712. doi:10.2307/2946696.
   Web of Science ®Google Scholar
• Mendelsohn, M. F., ed. 2019. The Anti-Bribery and Anti-Corruption Review. London: Law Business Research Limited.
   Google Scholar
• Opler, T., L. Pinkowitz, R. Stulz, and R. Williamson. 1999. “The Determinants and Implications of Corporate Cash Holdings.” Journal of Financial Economics 52 (1): 3–46. doi:10.1016/S0304-405X(99)00003-3.
   Web of Science ®Google Scholar
• Persson, A., B. Rothstein, and J. Teorell. 2013. “Why Anticorruption Reforms Fail – Systemic Corruption as a Collective Action Problem.” Governance 26 (3): 449–471. doi:10.1111/j.1468-0491.2012.01604.x.
   Web of Science ®Google Scholar
• Phan, H. V., N. H. Nguyen, H. T. Nguyen, and S. Hegde. 2019. “Policy Uncertainty and Firm Cash Holdings.” Journal of Business Research 95: 71–82. doi:10.1016/j.jbusres.2018.10.001.
   Web of Science ®Google Scholar
• Preuss, L., R. Barkemeyer, and A. Glavas. 2016. “Corporate Social Responsibility in Developing Country Multinationals: Identifying Company and Country-Level Influences.” Business Ethics Quarterly 26 (3): 347–378. doi:10.1017/beq.2016.42.
   Web of Science ®Google Scholar
• Seifert, B., and H. Gonenc. 2016. “Creditor Rights, Country Governance, and Corporate Cash Holdings.” Journal of International Financial Management & Accounting 27 (1): 65–90. doi:10.1111/jifm.12033.
   Web of Science ®Google Scholar
• Seo, D. W., and S. H. Han. 2022. “Corruption and Corporate Cash Holdings.” Emerging Markets Finance and Trade 58 (5): 1441–1455. doi:10.1080/1540496X.2021.1890022.
   Web of Science ®Google Scholar
• Smith, J. D. 2016. “US Political Corruption and Firm Financial Policies.” Journal of Financial Economics 121 (2): 350–367. doi:10.1016/j.jfineco.2015.08.021.
   Web of Science ®Google Scholar
• Sobel, M. E. 1982. “Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models.” Sociological Methodology 13: 290–312. doi:10.2307/270723.
   Google Scholar
• Sundström, A. 2019. “Why Do People Pay Bribes? A Survey Experiment with Resource Users.” Social Science Quarterly 100 (3): 725–735. doi:10.1111/ssqu.12600.
   Web of Science ®Google Scholar
• Thakur, B. P. S., and M. Kannadhasan. 2019. “Corruption and Cash Holdings: Evidence from Emerging Market Economies.” Emerging Markets Review 38: 1–17. doi:10.1016/j.ememar.2018.11.008.
   Web of Science ®Google Scholar
• Tran, Q. T. 2020. “Corruption and Corporate Cash Holdings: International Evidence.” Journal of Multinational Financial Management 54: 100611. doi:10.1016/j.mulfin.2019.100611.
   Web of Science ®Google Scholar
• Treaty on the Functioning of the European Union. 2012. Official Journal of the European Union 326, 26.10.2012: 47–390. http://data.europa.eu/eli/treaty/tfeu_2012/oj.
   Google Scholar
• Wheeler, P. B. 2019. “Loan Loss Accounting and Procyclical Bank Lending: The Role of Direct Regulatory Actions.” Journal of Accounting and Economics 67 (2–3): 463–495. doi:10.1016/j.jacceco.2019.01.003.
   Web of Science ®Google Scholar
• Whitley, R. 1999. Divergent Capitalisms: The Social Structuring and Change of Business Systems. Oxford: Oxford Universtiy Press.
   Google Scholar
• Xiong, J., C. Ouyang, J. Y. Tong, and F. F. Zhang. 2021. “Fraud Commitment in a Smaller World: Evidence from a Natural Experiment.” Journal of Corporate Finance 70: 102090. doi:10.1016/j.jcorpfin.2021.102090.
   Web of Science ®Google Scholar
• Xu, N., Q. Chen, Y. Xu, and K. C. Chan. 2016. “Political Uncertainty and Cash Holdings: Evidence from China.” Journal of Corporate Finance 40: 276–295. doi:10.1016/j.jcorpfin.2016.08.007.
   Web of Science ®Google Scholar
• Xu, X., and Y. Li. 2018. “Local Corruption and Corporate Cash Holdings: Sheltering Assets or Agency Conflict?” China Journal of Accounting Research 11 (4): 307–324. doi:10.1016/j.cjar.2018.05.001.
   Web of Science ®Google Scholar
• Xu, G., D. Zhang, and G. Yano. 2017. “Can Corruption Really Function as ‘Protection Money’ and ‘Grease Money’? Evidence from Chinese Firms.” Economic Systems 41 (4): 622–638. doi:10.1016/j.ecosys.2017.03.001.
   Web of Science ®Google Scholar