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This paper investigates crime against enterprises, using a simple modelling framework and enterprise surveys conducted in 34 countries in Europe and Asia between 2002 and 2005. The empirical results show that crime has an especially large negative impact on micro enterprises that handle large cash balances. Enterprises with worse business conduct are also more likely to be targeted by crime. The perception of crime is shown to be associated with experience of street crime on the enterprise level and experience of organized crime on the country level. The paper also highlights the deterrent effect of crime on enterprise investment decisions.

Crime, Business Conduct and Investment Decisions: Enterprise Survey Evidence from 34 Countries in Europe and Asia