Corruption culture and corporate misconduct

• 成果类型: Article
• 署名作者: Liu, Xiaoding
• 署名单位: University of Oregon
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2016.06.005
• 发表日期: 2016
• 页码: 307-327
• 关键词: corruption; Corporate culture; corporate governance; misconduct; FRAUD

摘要

Despite significant interest in corporate culture, there is little empirical research on its role in influencing corporate misconduct. Using cultural background information on key company insiders, I construct a measure of corporate corruption culture, capturing a firm's general attitude toward opportunistic behavior. Firms with high corruption culture are more likely to engage in earnings management, accounting fraud, option backdating, and opportunistic insider trading. I further explore the inner workings of corruption culture and find evidence that it operates both as a selection mechanism and by having a direct influence on individual behavior. (C) 2016 Elsevier B.V. All rights reserved.