TY - JOUR
T1 - The moderating role of economic uncertainty via corruption on investment: Evidence from European firm level
AU - Akron, Sagi
AU - Demir, Ender
AU - Díez-Esteban, José María
AU - García-Gómez, Conrado Diego
PY - 2022
Y1 - 2022
N2 - This paper uniquely examines the moderation effect of economic uncertainty via corruption's impact on the firm level investment. By using a sample of firms from 30 countries in Europe for the period 2011-2020, we first observe a direct negative effect of either economic uncertainty or corruption on firms’ capital expenditures. More importantly, we crucially find a positive moderation effect of uncertainty on corruption, amplifying corruption's impact on the corporate investment. The findings, robust to country, industry and time fixed-effects, shed important light on the East-Asian countries growth puzzle.
AB - This paper uniquely examines the moderation effect of economic uncertainty via corruption's impact on the firm level investment. By using a sample of firms from 30 countries in Europe for the period 2011-2020, we first observe a direct negative effect of either economic uncertainty or corruption on firms’ capital expenditures. More importantly, we crucially find a positive moderation effect of uncertainty on corruption, amplifying corruption's impact on the corporate investment. The findings, robust to country, industry and time fixed-effects, shed important light on the East-Asian countries growth puzzle.
U2 - 10.1504/ejim.2022.10051315
DO - 10.1504/ejim.2022.10051315
M3 - Article
SN - 1751-6757
JO - European Journal of International Management
JF - European Journal of International Management
ER -