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 language | English |
|---|---|
| Pages (from-to) | 230-253 |
| Number of pages | 24 |
| Journal | European Journal of International Management |
| Volume | 22 |
| Issue number | 2 |
| DOIs | |
| State | Published - 2024 |
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
