Effects of corruption on MNEs' reinvestment decisions

Mehmet Demirbag, Martina McGuinness, Nizamettin Bayyurt

    Research output: Contribution to conferencePaper

    Abstract

    A range of studies have found that corruption has a significant impact upon FDI decisions, however to date there has been little investigation into longer term investments made by firms. Utilising 2005 World Bank Enterprise Survey data, this study explores the relation ship between corruption and MNEs' strategic decision to reinvest profits. Drawing together institutional and transaction costs approaches , we find variation in the different dimensions of corruption and their impact upon relationship between corruption and reinvestment. We
    find that pervasive corruption impacts negatively upon reinvestment whilst bribery in not found to be significant. Perceived robust legal institutions have a positive correlation with reinvestment. Firm level attributes of increased size and age are important factors in positive reinvestment decisions.

    Conference

    ConferenceAcademy of International Business Annual Meeting
    CountryUnited States
    CityWashington
    Period30/06/122/07/12

    Fingerprint

    Multinational enterprises
    Corruption
    Survey data
    Transaction costs
    Factors
    Legal institutions
    Strategic decisions
    World Bank
    Bribery
    Profit

    Keywords

    • investments
    • reinvestment
    • multinational enterprise

    Cite this

    Demirbag, M., McGuinness, M., & Bayyurt, N. (2012). Effects of corruption on MNEs' reinvestment decisions. Paper presented at Academy of International Business Annual Meeting, Washington, United States.
    Demirbag, Mehmet ; McGuinness, Martina ; Bayyurt, Nizamettin. / Effects of corruption on MNEs' reinvestment decisions. Paper presented at Academy of International Business Annual Meeting, Washington, United States.
    @conference{e4a063ca0a494ab1a0417cbf76586b79,
    title = "Effects of corruption on MNEs' reinvestment decisions",
    abstract = "A range of studies have found that corruption has a significant impact upon FDI decisions, however to date there has been little investigation into longer term investments made by firms. Utilising 2005 World Bank Enterprise Survey data, this study explores the relation ship between corruption and MNEs' strategic decision to reinvest profits. Drawing together institutional and transaction costs approaches , we find variation in the different dimensions of corruption and their impact upon relationship between corruption and reinvestment. Wefind that pervasive corruption impacts negatively upon reinvestment whilst bribery in not found to be significant. Perceived robust legal institutions have a positive correlation with reinvestment. Firm level attributes of increased size and age are important factors in positive reinvestment decisions.",
    keywords = "investments, reinvestment, multinational enterprise",
    author = "Mehmet Demirbag and Martina McGuinness and Nizamettin Bayyurt",
    year = "2012",
    month = "7",
    language = "English",
    note = "Academy of International Business Annual Meeting ; Conference date: 30-06-2012 Through 02-07-2012",

    }

    Demirbag, M, McGuinness, M & Bayyurt, N 2012, 'Effects of corruption on MNEs' reinvestment decisions' Paper presented at Academy of International Business Annual Meeting, Washington, United States, 30/06/12 - 2/07/12, .

    Effects of corruption on MNEs' reinvestment decisions. / Demirbag, Mehmet; McGuinness, Martina; Bayyurt, Nizamettin.

    2012. Paper presented at Academy of International Business Annual Meeting, Washington, United States.

    Research output: Contribution to conferencePaper

    TY - CONF

    T1 - Effects of corruption on MNEs' reinvestment decisions

    AU - Demirbag, Mehmet

    AU - McGuinness, Martina

    AU - Bayyurt, Nizamettin

    PY - 2012/7

    Y1 - 2012/7

    N2 - A range of studies have found that corruption has a significant impact upon FDI decisions, however to date there has been little investigation into longer term investments made by firms. Utilising 2005 World Bank Enterprise Survey data, this study explores the relation ship between corruption and MNEs' strategic decision to reinvest profits. Drawing together institutional and transaction costs approaches , we find variation in the different dimensions of corruption and their impact upon relationship between corruption and reinvestment. Wefind that pervasive corruption impacts negatively upon reinvestment whilst bribery in not found to be significant. Perceived robust legal institutions have a positive correlation with reinvestment. Firm level attributes of increased size and age are important factors in positive reinvestment decisions.

    AB - A range of studies have found that corruption has a significant impact upon FDI decisions, however to date there has been little investigation into longer term investments made by firms. Utilising 2005 World Bank Enterprise Survey data, this study explores the relation ship between corruption and MNEs' strategic decision to reinvest profits. Drawing together institutional and transaction costs approaches , we find variation in the different dimensions of corruption and their impact upon relationship between corruption and reinvestment. Wefind that pervasive corruption impacts negatively upon reinvestment whilst bribery in not found to be significant. Perceived robust legal institutions have a positive correlation with reinvestment. Firm level attributes of increased size and age are important factors in positive reinvestment decisions.

    KW - investments

    KW - reinvestment

    KW - multinational enterprise

    UR - https://aib.msu.edu/events/2012/

    M3 - Paper

    ER -

    Demirbag M, McGuinness M, Bayyurt N. Effects of corruption on MNEs' reinvestment decisions. 2012. Paper presented at Academy of International Business Annual Meeting, Washington, United States.