Bribery, on-the-job training, and firm performance

Spyridon Boikos, Mehmet Pinar*, Thanasis Stengos

*Corresponding author for this work

Research output: Contribution to journalArticle (journal)peer-review

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Abstract

The previous literature has extensively examined the effect of firm-level bribery on firm performance but not through on-the-job training. This paper investigates the impact of paying bribes on the firm’s investment decisions in on-the-job training and offers mediating implications of corruption on firm performance. We empirically examine the relationship between bribery and on-the-job training using firm-level data from the World Bank Enterprise Surveys consisting of a sample of 94 developing countries with 20,601 firms. The findings show that bribery and on-the-job training intensity affects real annual sales growth rates negatively and positively, respectively. Furthermore, firms exposed to more bribery reduce their on-the-job training intensity. The results are robust to the different classifications of the firm’s size, different subsamples, and controls for the endogeneity of the on-the-job training and bribery.
Original languageEnglish
Pages (from-to)37-58
Number of pages22
JournalSmall Business Economics
Volume60
Issue number1
Early online date23 May 2022
DOIs
Publication statusPublished - 1 Jan 2023

Keywords

  • Article
  • Corruption
  • Bribery
  • Firm performance
  • On-the-job training
  • D21
  • D22
  • D73
  • E24
  • L25

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