@article{53fd103ead5841c7b9c8885e63b4a913,
title = "Does corruption grease or sand the wheels of investment or innovation? Different effects in advanced and emerging economies",
abstract = "We assess different effects of corruption on corporate activities depending on whether a firm operates in an advanced or emerging economy. In emerging economies, greater corruption is related to greater capital expenditures. In advanced economies, greater corruption is positively related to innovation. Further, we find the relationship between corruption and capital exp20enditure (innovation) is moderated by diversification. Our findings suggest that corruption leads firms to take more action in the areas that the economy has a competitive edge in.",
keywords = "advanced economies, corporate investment, Corruption, emerging markets, innovation",
author = "Yuna Heo and Fangfang Hou and Park, {Seongkyu Gilbert}",
note = "Funding Information: We thank David Peel (editor), the anonymous referee, Vikas Agarwal, Daniel Aobdia, Vladimir Atanasov (discussant), Kee-Hong Bae, Warren Bailey, Xin Chang, Alex Edmans, Logan Emery (discussant), Mariassunta Giannetti, Andrew Marshall, Huai Zhang, and conference participants for helpful comments made at 2019 MFA, 2018 FMA annual meeting, and 2018 CAFM. Fangfang Hou acknowledges the work was supported by the Fundamental Research Funds for the Central Universities of China (Grant No. 20720201024). All remaining errors are our own. Funding Information: This work was supported by the the Fundamental Research Funds for the Central Universities of China [20720201024]. We thank David Peel (editor),?the anonymous referee, Vikas Agarwal, Daniel Aobdia, Vladimir Atanasov (discussant), Kee-Hong Bae, Warren Bailey, Xin Chang, Alex Edmans, Logan Emery (discussant), Mariassunta Giannetti, Andrew Marshall, Huai Zhang, and conference participants for helpful comments made at 2019 MFA, 2018 FMA annual meeting, and 2018 CAFM. Fangfang Hou acknowledges the work was supported by the Fundamental Research Funds for the Central Universities of China (Grant No. 20720201024). All remaining errors are our own. Publisher Copyright: {\textcopyright} 2020 Informa UK Limited, trading as Taylor & Francis Group.",
year = "2021",
doi = "10.1080/00036846.2020.1791313",
language = "English",
volume = "53",
pages = "35--60",
journal = "Applied Economics",
issn = "0003-6846",
publisher = "Taylor and Francis Ltd.",
number = "1",
}