The moderating role of economic uncertainty via corruption on investment: evidence from European firm level

Sagi Akron, Ender Demir, José María Díez-Esteban, Conrado Diego García-Gómez

Research output: Contribution to journalArticlepeer-review

Abstract

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.

Original languageEnglish
Pages (from-to)230-253
Number of pages24
JournalEuropean Journal of International Management
Volume22
Issue number2
DOIs
StatePublished - 2024
Externally publishedYes

Bibliographical note

Publisher Copyright:
Copyright © 2024 Inderscience Enterprises Ltd.

Keywords

  • corporate investment
  • corruption
  • moderation
  • uncertainty
  • world uncertainty index

ASJC Scopus subject areas

  • Business and International Management
  • Education
  • Organizational Behavior and Human Resource Management

Fingerprint

Dive into the research topics of 'The moderating role of economic uncertainty via corruption on investment: evidence from European firm level'. Together they form a unique fingerprint.

Cite this