Title: Cultural and institutional interaction effects on firm bribery

Authors: Piyaphan Changwatchai; Siwapong Dheera-aumpon

Addresses: Department of Economics, Kasetsart University, Bangkok, 10900, Thailand ' Department of Economics, Kasetsart University, Bangkok, 10900, Thailand

Abstract: Firm bribery can be influenced by culture and institutions. They may have both direct and indirect effects on firm bribery. The aim of the study, therefore, is to examine the interaction effects of culture and institutions on firm bribery. This study relies on data from the World Bank's Enterprise Surveys on firm bribery, Hofstede's cultural data, and the Worldwide Governance Indicators for institutional data. According to the findings, a country's level of power distance has a moderating effect on the negative relationship between firm bribery and some institutional factors, including government effectiveness as well as voice and accountability. To combat bribery, the government of a nation with a high power distance should focus on enhancing its service quality while also allowing for greater freedom of speech and free media.

Keywords: bribe; business; culture; institution; power distance; government effectiveness; voice and accountability.

DOI: 10.1504/IJMEF.2024.139024

International Journal of Monetary Economics and Finance, 2024 Vol.17 No.2/3, pp.212 - 220

Received: 16 Jul 2022
Accepted: 12 Jan 2023
Published online: 10 Jun 2024 *

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