Firm Efficiency, Foreign Ownership and CEO Gender in Corrupt Environments

CERGE-EI Working Paper Series No. 595; ISBN 978-80-7343-402-1

41 Pages Posted: 9 Aug 2017

See all articles by Jan Hanousek

Jan Hanousek

Faculty of Business and Economics, Mendel University in Brno; Centre for Economic Policy Research (CEPR)

Anastasiya Shamshur

Charles University in Prague - CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences

Jiri Tresl

Charles University in Prague - CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences

Date Written: August 1, 2017

Abstract

We study the effects of corruption on firm efficiency using a unique dataset of private firms from 14 Central and Eastern European countries from 2000 to 2013. We find that an environment characterized by a high level of corruption has an adverse effect on firm efficiency. This effect is stronger for firms with a lower propensity to behave corruptly, such as foreign-controlled firms and firms managed by female CEOs, while local firms and firms with male CEOs are not disadvantaged. We also find that an environment characterized by considerable heterogeneity in the perception of corruption is associated with an increase in firm efficiency. This effect is particularly strong for foreign-controlled firms from low corruption countries, while no effect is observed for firms managed by a female CEO.

Keywords: efficiency, corruption, ownership structure, foreign ownership, CEO gender, firms, panel data, stochastic frontier, Europe

JEL Classification: C33, D24, G32, L60, L80, M21

Suggested Citation

Hanousek, Jan and Shamshur, Anastasiya and Tresl, Jiri, Firm Efficiency, Foreign Ownership and CEO Gender in Corrupt Environments (August 1, 2017). CERGE-EI Working Paper Series No. 595; ISBN 978-80-7343-402-1 , Available at SSRN: https://ssrn.com/abstract=3014469 or http://dx.doi.org/10.2139/ssrn.3014469

Jan Hanousek (Contact Author)

Faculty of Business and Economics, Mendel University in Brno ( email )

Brno
Czech Republic

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Anastasiya Shamshur

Charles University in Prague - CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences ( email )

Politickych veznu 7
Prague, 111 21
Czech Republic

HOME PAGE: http://www.cerge-ei.cz

Jiri Tresl

Charles University in Prague - CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences ( email )

Politickych veznu 7
Prague, 111 21
Czech Republic

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