Determinants of defence industry corruption risk: firm level empirical evidence using transparency international‘s anti-corruption index

Krishnamurti, Chandrasekhar and Pensiero, Domenico and Velayutham, Eswaran (2016) Determinants of defence industry corruption risk: firm level empirical evidence using transparency international‘s anti-corruption index. Singapore Economic Review, 61 (2). ISSN 0217-5908

Abstract

Since there is a general perception that the defence industry is more susceptible to corruption compared to other sectors, using a unique database provided by Transparency International (TI), we examine the role of firm level antecedents on firm level corruption risk in the defence industry. We find that larger firms have lower levels of firm level corruption risk. Managerial shareholding is associated with higher levels of corruption risk. Firms that voluntarily disclose more information regarding their corruption control systems tend to have lower levels of corruption risk. Finally, listed firms also have lower levels of firm level corruption risk. We find that the “listing effect” is stronger among firms in financially developed countries ostensibly due to the better scrutiny and monitoring by market participants. In our analysis, we control for country level variables such as a composite index of government effectiveness in controlling defence industry corruption.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 05 Apr 2017 06:44
Last Modified: 25 Aug 2017 01:48
Uncontrolled Keywords: corruption risk; institutional quality; visibility; monitoring.
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
Identification Number or DOI: 10.1142/S0217590816500053
URI: http://eprints.usq.edu.au/id/eprint/30936

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