Download or read book Political Corruption And Corporate Finance written by Quoc Trung Tran and published by World Scientific. This book was released on 2023-10-23 with total page 317 pages. Available in PDF, EPUB and Kindle. Book excerpt: From a taboo topic in the early 1990s, corruption has now become an intriguing economic issue attracting broad attention from academics and practitioners. Political Corruption and Corporate Finance is the first attempt to scrutinize the effect of political corruption on corporate finance. It provides readers with a comprehensive overview of corruption-related issues and theoretical and empirical studies in corporate finance. This book summarizes the causes and effects of political corruption as well as anti-corruption mechanisms and initiatives; analyzes how political corruption at both state and local levels determines corporate financial decisions (investment, financing, and dividend); and discusses how the corruption environment determines firm-level financial behavior.The first three chapters of the book introduce political corruption, the status of political corruption, and anti-corruption campaigns around the world. The last three chapters focus on how firms make financial decisions, and the role of political corruption in corporate finance. By summarizing real problems and results from academic research, this work will help readers to understand how the corruption environment determines firm-level financial behavior.

Download or read book Essays on Corruption and Corporate Finance written by Taek-yul Kim and published by . This book was released on 2014 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: The essays in my dissertation investigate how political corruption affects business decisions made by firms. In the first essay (co-authored with Jacqueline Garner and Adam Yore), we study how do firms respond when operating within a corrupt environment. To answer this question, we analyzes the interaction between the degree of local political corruption, lobbying expenditures, corporate investment, the cost of capital, and firm value. Using a sample of almost 11,000 firm year observations over a 12 year time period, we provide evidence that firms operating in corrupt political environments spend greater dollars on lobbying which helps secure safer cash flows. Consistent with a securing safer returns argument, these lobbying-intensive firms have less volatile cash flows and stock returns. They also exhibit lower costs of equity and an overall lower weighted average cost of capital. However, these benefits come at a cost: lobbying firms are associated with a reduction in spending on traditional investment such as research and development and capital expenditures. Overall, our evidence suggests that the misallocation of resources by firms operating in corrupt environments results in lower firm value, as measured by Tobin's q. The second essay (co-authored with David Becher and Jacqueline Garner) examines the relationship between U.S. firms' local area corruption and their acquisition decisions during the period of 1997-2009. While previous studies have shown that the corruption in the target's local area affects the completion and premiums paid, we find that these results are significantly dependent on the corruption of the acquirer's local area as well. When targets and acquirers are both from a corrupt area, completion rates are higher, while premiums and target returns are lower. These findings are consistent with our familiarity and bargaining hypothesis. Yet, acquirer shareholders benefit overall. We also find that firms will employ lobbying activities to influence merger outcomes in their favor. Lobbying activities by targets result in fewer completed deals, while lobbying activities by acquirers increase the probability of completion. We also observe that lobbying activities by both parties are related to longer completion times, and acquirer lobbying results in higher premiums, suggesting that lobbying is used with hard to complete deals. These results are not explained by location or industry. The evidence suggests that acquirers which have dealt with corrupt environments previously are able to overcome the costs related to the target's corrupt environment.

Download or read book If Money Talks What Does it Say written by Iain McMenamin and published by OUP Oxford. This book was released on 2013-01-31 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why do businesses contribute to political parties? Is money a universal language? Do business contributions to political parties convey different messages in different countries? This book answers these questions based on intensive case studies of Australia, Canada, and Germany, as well as data from other countries. Business money does talk politics. In liberal Australia and Canada, the competitive short-term focus of firms generated substantial demand for private goods that could help firms develop an advantage over their rivals. Thus, business financing of parties conveyed a pragmatic message: in exchange for small but certain financial benefits, contributing businesses expect, as a reciprocation, to receive special consideration of their lobbying efforts. Australia's left-right party system created an awareness of policy risk, which motivated ideological payments, but there was no ideological bias in business financing of politics in centrist Canada. In Germany's co-ordinated economy, the most important policies for firms tend to be the public goods defined, championed, and delivered by their business associations. In this context, the pragmatic motivation for contributions to political parties is weak. The combination of consensual political institutions and constrained parties means there is a very low risk of major policy change from election to election. So, there is also little interest in ideological financing of political parties. If money talks, what does it say? places business financing of political parties in the context of debates about political corruption and offers advice on political reform. Comparative Politics is a series for students, teachers, and researchers of political science that deals with contemporary government and politics. Global in scope, books in the series are characterised by a stress on comparative analysis and strong methodological rigour. The series is published in association with the European Consortium for Political Research. For more information visit: www.ecprnet.eu The Comparative Politics series is edited by Professor David M. Farrell, School of Politics and International Relations, University College Dublin, Kenneth Carty, Professor of Political Science, University of British Columbia, and Professor Dirk Berg-Schlosser, Institute of Political Science, Philipps University, Marburg.

Download or read book Political Finance and Corruption in Eastern Europe written by Daniel Smilov and published by Routledge. This book was released on 2016-04-22 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: One characteristic of Central and Eastern European democracies in transition is the lack of stability in terms of accountability and transparency in practices of political party financing. This key volume provides a thorough and well-structured post-communist study of political finance, election campaign and party funding issues within this region, focusing specifically on Central and Eastern European countries. It outlines best practices for political party and election campaign financing, discusses the shortcomings of political funding schemes and highlights the scandals that emerge under investigation. Providing an illuminating analysis of how current regulations of political finance succeed in controlling the rise of political corruption, the volume will be indispensable for anyone interested in the efficiency of regulation in party funding.

Download or read book Identification and Inference for Econometric Models written by Donald W. K. Andrews and published by Cambridge University Press. This book was released on 2005-06-17 with total page 606 pages. Available in PDF, EPUB and Kindle. Book excerpt: This 2005 collection pushed forward the research frontier in four areas of theoretical econometrics.

Download or read book Corruption and Reform written by Edward L. Glaeser and published by University of Chicago Press. This book was released on 2007-11-01 with total page 397 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite recent corporate scandals, the United States is among the world’s least corrupt nations. But in the nineteenth century, the degree of fraud and corruption in America approached that of today’s most corrupt developing nations, as municipal governments and robber barons alike found new ways to steal from taxpayers and swindle investors. In Corruption and Reform, contributors explore this shadowy period of United States history in search of better methods to fight corruption worldwide today. Contributors to this volume address the measurement and consequences of fraud and corruption and the forces that ultimately led to their decline within the United States. They show that various approaches to reducing corruption have met with success, such as deregulation, particularly “free banking,” in the 1830s. In the 1930s, corruption was kept in check when new federal bureaucracies replaced local administrations in doling out relief. Another deterrent to corruption was the independent press, which kept a watchful eye over government and business. These and other facets of American history analyzed in this volume make it indispensable as background for anyone interested in corruption today.

Download or read book Bank Supervision and Corporate Finance written by Thorsten Beck and published by World Bank Publications. This book was released on 2003 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the impact of bank supervision on the financing obstacles faced by almost 5,000 corporations across 49 countries. We find that firms in countries with strong official supervisory agencies that directly monitor banks tend to face greater financing obstacles. Moreover, powerful official supervision tends to increase firm reliance on special connections and corruption in raising external finance, which is consistent with political/regulatory capture theories. Creating a supervisory agency that is independent of the government and banks mitigates the adverse consequences of powerful supervision. Finally, we find that bank supervisory agencies that force accurate information disclosure by banks and enhance private monitoring tend to ease the financing obstacles faced by firms.

Download or read book Political Corruption and the Abuse of Power written by Sarah Machajewski and published by Greenhaven Publishing LLC. This book was released on 2018-07-15 with total page 106 pages. Available in PDF, EPUB and Kindle. Book excerpt: Throughout history, gaining political power has frequently led to unethical behavior. It is difficult for people to resist the temptation to abuse their power. In the worst cases, this has led to political unrest, economic instability, and genocide. Readers learn what political corruption is, how it affects citizens' lives, and what can be done about it. Historical and modern examples are provided to give readers a comprehensive view of this important and timely topic. Informative charts and full-color photographs enhance the engaging text to show young adults the importance of civic engagement and political scrutiny to combat corruption.

Download or read book Corruption and governance in Asia written by J. Kidd and published by Springer. This book was released on 2002-11-14 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book delves into the nature of governance in Asia both at government and corporate level. It reviews the history and suggests potential solutions for years of underperformance due to the corrupt practices that have developed because of a poor understanding of corporate governance. The authors are experts in practices in Asia and their views are expressed in a sympathetic manner, at no time insisting that a western model of governance is correct. Instead the authors advise local models appropriate to the state of development and suggest that individual countries institute behavioural models that will mature as nations quickly develop in an increasingly global world.

Download or read book Political Corruption written by Debra A. Miller and published by Greenhaven Publishing LLC. This book was released on 2007-07-06 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt: The legal definition of political corruption is an illegal act by a government officeholder who uses the power gained by the position for illegitimate private gain. Examples of political corruption include bribery, ethically questionable behavior, and conflicts of interest. This pertinent volume provides readers with an expansive survey on the topic of political corruption. Chapters discuss abuse of public office for private gain, the relationship between money and political corruption, and what efforts exist to curb political corruption.

Download or read book Political Corruption and Organizational Crime written by Elizangela Valarini and published by Springer Nature. This book was released on 2021-10-01 with total page 425 pages. Available in PDF, EPUB and Kindle. Book excerpt: Level of compliance - one of the most important prerequisites of good governance - varies widely across countries of the Global North and the less developed, Global South. Acts of non-compliance, such as electoral irregularities, dubious deals between private and public sectors, questionable role of the justice systems and financial scandals, though they vary greatly across countries, are an omnipresent reality of contemporary life. This volume has brought together a number of case studies of such deviant behavior in political, juridical and corporate fields, from several countries of Asia, Europe and South America, within a common framework. Instead of a moral approach based exclusively on the legality and illegality of the act, the authors of these essays dissect non-compliance analytically, taking culture and context into account. They argue that, while criminal and corrupt dealings deserve to be exposed by all means from an ethical point of view, seen from an interdisciplinary angle, one needs to probe deeper into the dynamic that leads to such non-compliance with the law in the first place.

Download or read book The Measurement and Macro Relevance of Corruption A Big Data Approach written by Sandile Hlatshwayo and published by International Monetary Fund. This book was released on 2018-08-31 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corruption is macro-relevant for many countries, but is often hidden, making measurement of it—and its effects—inherently difficult. Existing indicators suffer from several weaknesses, including a lack of time variation due to the sticky nature of perception-based measures, reliance on a limited pool of experts, and an inability to distinguish between corruption and institutional capacity gaps. This paper attempts to address these limitations by leveraging news media coverage of corruption. We contribute to the literature by constructing the first big data, cross-country news flow indices of corruption (NIC) and anti-corruption (anti-NIC) by running country-specific search algorithms over more than 665 million international news articles. These indices correlate well with existing measures of corruption but offer additional richness in their time-series variation. Drawing on theory from the corporate finance and behavioral economics literature, we also test to what extent news about corruption and anti-corruption efforts affects economic agents’ assessments of corruption and, in turn, economic outcomes. We find that NIC shocks appear to negatively impact both financial (e.g., stock market returns and yield spreads) and real variables (e.g., growth), albeit with some country heterogeneity. On average, NIC shocks lower real per capita GDP growth by 3 percentage points over a two-year period, illustrating persistence in the effect of such shocks. Conversely, there is suggestive evidence that anti-NIC efforts appear to have a sustained positive macro impact only when paired with meaningful institutional strengthening, proxied by capacity development efforts.

Download or read book Corruption in International Business written by Ms Sharon Eicher and published by Gower Publishing, Ltd.. This book was released on 2012-08-28 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is common practice to assume that business practices are universally similar. Business and social attitudes to corruption, however, vary according to the wide variety of cultural norms across the countries of the world. International business involves complex, ethically challenging, and sometimes threatening, dilemmas that can involve political and personal agendas. Corruption in International Business presents a broad range of perspectives on how corruption can be defined; the responsibilities of those working for publicly traded companies to their shareholders; and the positive influences that corporations can have upon combating international corruption. The authors differentiate between public and private sector corruption and explore the implications of both, as well as methods for qualifying and quantifying corruption and the challenges facing policy makers, legal systems, corporations, and NGOs, as they seek to mitigate the effects of corruption and enable cultural and social change.

Download or read book Party Finance and Political Corruption written by R. Williams and published by Palgrave Macmillan. This book was released on 2014-01-14 with total page 214 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers an in-depth examination of party finance and political corruption in a variety of political contexts. Its central focus is on the relationship between different forms of raising party finance and the consequent implications for improper influence over policy making and implementations. It presents both a general discussion of the issues and a set of case studies which illuminate the particular experiences of Britain, the United States, Russia, Italy, Germany and Southeast Asia.

Download or read book Political Corruption and Corporate Cash Holdings written by Dongwook Seo and published by . This book was released on 2018 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study empirically analyzes the effects of political corruption on corporate cash holdings policy and the impact of cash holdings on firm performance using 97 multinational data. We find that there is a nonlinear cubic function relationship between the political corruption and corporate cash holdings with a negative coefficient of cubic term of political corruption. Specifically, in developed countries with low levels of political corruption, there is a U-shape relationship between political corruption and cash holdings; however, in frontier and emerging countries, there is an Inverted-U-shape relationship. These results show that two hypothesis 'Expropriation Shielding hypothesis' and 'Preoccupancy hypothesis' on previous literature are not conflicting, but can be explained differently according to the level of development of countries and the level of political corruption. In addition, we find that the effects of political corruption on firm performance when firms use cash are different in developed and developing countries. From these results, we suggest that political corruption is an important variable in corporate financial policy and firm performance.

Download or read book Examining Corruption and the Sustainable Development Goals written by Yakubu, Ibrahim Nandom and published by IGI Global. This book was released on 2024-03-18 with total page 351 pages. Available in PDF, EPUB and Kindle. Book excerpt: In global development, corruption entangles many societies, most observably in the vulnerable fabric of developing nations. Examining Corruption and the Sustainable Development Goals unravels the layers of this persistent challenge, meticulously examining its pervasive influence on pursuing the United Nations Sustainable Development Goals (SDGs). This book ventures into the heart of corruption's impacts, spanning economic, social, political, and environmental dimensions. Corruption, manifesting in insidious forms such as bribery, embezzlement, and nepotism, casts a daunting shadow over the integrity of public institutions, eroding public trust crucial for sustainable development initiatives. This book explores case studies, robust theoretical frameworks, and insightful policy perspectives. It is tailored for an audience within the academic research community, scholars, researchers, policymakers, and development practitioners thirsty for an understanding of the complex interplay between corruption and sustainable development in the developing world.

Download or read book Coining Corruption written by Kurt Hohenstein and published by . This book was released on 2007 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the wake of Watergate, Congress passed the Federal Election Campaign Act (FECA) in an effort to prevent the corruption of future elections. The U.S. Supreme Court, in Buckley v. Valeo (1976), defined corruption as quid pro quo--"get for giving"--meaning Congress could only regulate the kind of corruption that had occurred if a campaign contributor received political favors from the candidate. This definition has since shaped and limited efforts at campaign finance reform, often with ironic and unintended consequences. By shifting the focus to the source and amount of contributions, the justices in the Buckley decision ignored disparities in funding and the resulting ability of particular candidates to dominate communication channels. In Coining Corruption, legal and political historian Kurt Hohenstein provides a hitherto untold story about the successes and limitations of political reform. From 1876 until 1976, lawmakers and courts permitted regulation that potentially infringed upon freedom of speech: they understood corruption as the conversion of economic power into political power. In their view, corruption existed if a candidate's unfettered campaign spending overwhelmed other voices and limited real deliberation. Yet, as Hohenstein shows, Buckley's limited "quid pro quo" definition ignores these considerations. Following the evolution of the campaign finance system through the Bipartisan Campaign Reform Act of 2001 and the Supreme Court's decisions in McConnell v. FEC (2001) and Landell v. Sorrell (2006), Hohenstein calls for a return to a broad, historical understanding of corruption. American democracy demands regulation of the sources and amounts of campaign funding in order to prevent a monopoly on the vehicles of political debate. Those interested in reform politics, public policy, constitutional history, and Congress will appreciate this groundbreaking study.