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Corruption, crime and investments by firms in emerging economies
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Corruption, crime and investments by firms in emerging economies
Corruption, crime and investments by firms in emerging economies
Journal Article

Corruption, crime and investments by firms in emerging economies

2025
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Overview
Purpose The study aims to investigate the effect of corruption and crime on the investments by firms in emerging economies (EEs). Design/methodology/approach The study adopts the generalised methods of moments (GMM) estimator and data across 57 EEs. Findings The study shows that crime management, corruption and external quality assurance drive-up investments. Additionally, investments decline with firm age and crime incidence. Corruption and crime managements increase investments by exporting firms more than non-exporting firms investments. Also, external auditor services benefit investments by large firms more than small-medium firms. Originality/value There is a need for EEs to implement policies that will curtail corruption and create a level playing field and sustainable firm growth. EEs firms must be innovative to expand their productive investments and grow over time. Also, EEs firms should seek external quality certification, invest in internal security and monitor goods in transit.
Publisher
Emerald Group Publishing Limited