Effects of subnational regional corruption on growth strategies in emerging economies: Evidence from Russian domestic and international M&A activity
Journal
Global strategy journal
ISSN
2042-5791
ISSN-Digital
2042-5805
Type
journal article
Date Issued
2017-12-28
Author(s)
Abstract
This article contributes to an improved understanding of the effects of subnational regional corruption on the external growth strategies of emerging economy firms. We examine the acquisition activity of firms in their home regions, in other parts of the country, and internationally. We consider four mechanisms through which a corrupt regional home context can affect firms’ acquisition behaviors: (a) corrosive deal deterrence, (b) deal facilitation, (c) corruption escape into less corrupt contexts, and (d) enhanced corruption ability to acquire in similarly corrupt environments. Based on an analysis of the acquisition activity of 2,981 Russian firms established in 40 regions in Russia from 2001 to 2008, we find evidence for the existence of both deal facilitating and escaping effects of home region corruption.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Wiley
Publisher place
Malden, Mass.
Subject(s)
Division(s)
Eprints ID
253776