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National culture, corporate governance and corruption: A cross‐country analysis
Author(s) -
Boateng Agyenim,
Wang Yan,
Ntim Collins,
Glaister Keith W.
Publication year - 2021
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/ijfe.1991
Subject(s) - nexus (standard) , language change , corporate governance , individualism , hofstede's cultural dimensions theory , explanatory power , economics , organizational culture , uncertainty avoidance , development economics , political science , sociology , market economy , collectivism , social science , management , art , philosophy , literature , epistemology , computer science , embedded system
Drawing on institutional theory, we examine the impact of corporate governance (CG) on corruption. The interaction effects of national culture and CG on corruption are also examined. By employing a dataset of 149 countries, our baseline findings indicate that the quality of CG practices reduces the level of corruption. Findings also show that three cultural dimensions, namely, power distance, individualism and indulgence moderate the CG‐corruption nexus. Our findings indicate that CG and national culture explain the level of corruption among societies, with national culture appearing to matter more than the quality of CG. Our findings remain unchanged after controlling for endogeneities, country‐level factors, CG and corruption proxies.