Effect of political connections and corruption on corporate economic performance under the Foreign Corrupt Practices Act

Detalhes bibliográficos
Autor(a) principal: Cavalcante, Danival Sousa
Data de Publicação: 2023
Outros Autores: De Luca, Marcia Martins Mendes
Tipo de documento: Artigo
Idioma: por
eng
Título da fonte: Internext
Texto Completo: https://internext.espm.br/internext/article/view/745
Resumo: Objective: To investigate the effect of political connections and corruption on corporate economic performance in firms convicted of corruption by the Securities and Exchange Commission under the Foreign Corrupt Practices Act (FCPA). Method: The sample consisted of 131 firms, with 138 convictions received between the passage of the FCPA in 1978 and 2019. The collected data were submitted to descriptive statistics, comparison of means and multiple linear regression. Main Results: Corporate economic performance was positively explained by a combination of political connections and corruption. Performance was observed to rise over time in firms engaged in such practices, with the highest performance in the year of the conviction. Relevance / Originality: Our study fills a gap in the literature by correlating, in integrated manner, political connections and corruption with corporate economic performance, and by providing a longitudinal analysis of economic performance in demonstrably corrupt firms. Theoretical / Methodological Contributions: The study contributes to the literature by harmonizing the constructs of political connections and corruption with Resource Dependence Theory. Our results are relevant to organizations, the State and stakeholders in general and may subsidize decisions and policies for the control of corruption and maintenance of covenants. Nevertheless, they also point to socioeconomic dysfunction as these practices are detrimental to the economy at organizational level and, hence, cannot be legitimized, regardless of the desired ends.
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spelling Effect of political connections and corruption on corporate economic performance under the Foreign Corrupt Practices ActEfeito das conexões políticas e da corrupção no desempenho econômico empresarial no âmbito da Lei Foreign Corrupt Practices Act Conexões políticasCorrupçãoDependência de recursosDesempenho econômicoPolitical ConnectionsCorruptionResource DependenceEconomic PerformanceObjective: To investigate the effect of political connections and corruption on corporate economic performance in firms convicted of corruption by the Securities and Exchange Commission under the Foreign Corrupt Practices Act (FCPA). Method: The sample consisted of 131 firms, with 138 convictions received between the passage of the FCPA in 1978 and 2019. The collected data were submitted to descriptive statistics, comparison of means and multiple linear regression. Main Results: Corporate economic performance was positively explained by a combination of political connections and corruption. Performance was observed to rise over time in firms engaged in such practices, with the highest performance in the year of the conviction. Relevance / Originality: Our study fills a gap in the literature by correlating, in integrated manner, political connections and corruption with corporate economic performance, and by providing a longitudinal analysis of economic performance in demonstrably corrupt firms. Theoretical / Methodological Contributions: The study contributes to the literature by harmonizing the constructs of political connections and corruption with Resource Dependence Theory. Our results are relevant to organizations, the State and stakeholders in general and may subsidize decisions and policies for the control of corruption and maintenance of covenants. Nevertheless, they also point to socioeconomic dysfunction as these practices are detrimental to the economy at organizational level and, hence, cannot be legitimized, regardless of the desired ends.Objetivo: Investigar os reflexos das práticas de conexões políticas e de corrupção no desempenho econômico de empresas condenadas por corrupção pela Securities and Exchange Commission por violarem a Lei Foreign Corrupt Practices Act (FCPA). Método: A amostra reúne 131 companhias, responsáveis por 138 casos, desde o início da vigência da FCPA, em 1978, até 2019. Aplicaram-se técnicas de estatística descritiva, comparação de médias e regressão linear múltipla. Principais Resultados: O desempenho econômico das empresas foi explicado positivamente por práticas integradas de conexões políticas e corrupção. Verificou-se um movimento crescente no desempenho dessas empresas na extensão temporal das práticas, registrando-se o maior desempenho no ano da condenação. Relevância / Originalidade: O estudo supre lacunas na literatura, ao envolver, de forma integrada, as práticas de corrupção corporativa e conexões políticas no desempenho econômico empresarial, assim como a análise desse desempenho na extensão do tempo, em torno da prática de corrupção. Contribuições Teóricas / Metodológicas: Contribui-se para a literatura ao relacionar os construtos à teoria da dependência de recursos. Os resultados alcançam as organizações, o Estado e os stakeholders em geral, que servirão para subsidiar decisões e políticas que digam respeito ao controle da corrupção e à manutenção de alianças. No entanto, o resultado pode representar uma disfunção socioeconômica, já que tais práticas não são benéficas para a economia no contexto organizacional, não podendo ser legitimadas independentemente dos fins desejados.Escola Superior de Propaganda e Marketing - ESPM2023-09-04info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/pdfhttps://internext.espm.br/internext/article/view/74510.18568/internext.v18i3.745Internext - International Business and Management Review ; Vol. 18 No. 3 (2023): September - DecemberInternext; v. 18 n. 3 (2023): Setembro - Dezembro1980-4865reponame:Internextinstname:Escola Superior de Propaganda e Marketing (ESPM)instacron:ESPMporenghttps://internext.espm.br/internext/article/view/745/498https://internext.espm.br/internext/article/view/745/500Copyright (c) 2023 Danival Sousa Cavalcante, Marcia Martins Mendes De Lucahttp://creativecommons.org/licenses/by-nc-sa/4.0info:eu-repo/semantics/openAccessCavalcante, Danival SousaDe Luca, Marcia Martins Mendes2023-12-07T21:23:38Zoai:ojs.emnuvens.com.br:article/745Revistahttps://internext.espm.br/internextPRIhttps://internext.espm.br/internext/oaiinternext@espm.br1980-48651980-4865opendoar:2023-12-07T21:23:38Internext - Escola Superior de Propaganda e Marketing (ESPM)false
dc.title.none.fl_str_mv Effect of political connections and corruption on corporate economic performance under the Foreign Corrupt Practices Act
Efeito das conexões políticas e da corrupção no desempenho econômico empresarial no âmbito da Lei Foreign Corrupt Practices Act
title Effect of political connections and corruption on corporate economic performance under the Foreign Corrupt Practices Act
spellingShingle Effect of political connections and corruption on corporate economic performance under the Foreign Corrupt Practices Act
Cavalcante, Danival Sousa
Conexões políticas
Corrupção
Dependência de recursos
Desempenho econômico
Political Connections
Corruption
Resource Dependence
Economic Performance
title_short Effect of political connections and corruption on corporate economic performance under the Foreign Corrupt Practices Act
title_full Effect of political connections and corruption on corporate economic performance under the Foreign Corrupt Practices Act
title_fullStr Effect of political connections and corruption on corporate economic performance under the Foreign Corrupt Practices Act
title_full_unstemmed Effect of political connections and corruption on corporate economic performance under the Foreign Corrupt Practices Act
title_sort Effect of political connections and corruption on corporate economic performance under the Foreign Corrupt Practices Act
author Cavalcante, Danival Sousa
author_facet Cavalcante, Danival Sousa
De Luca, Marcia Martins Mendes
author_role author
author2 De Luca, Marcia Martins Mendes
author2_role author
dc.contributor.author.fl_str_mv Cavalcante, Danival Sousa
De Luca, Marcia Martins Mendes
dc.subject.por.fl_str_mv Conexões políticas
Corrupção
Dependência de recursos
Desempenho econômico
Political Connections
Corruption
Resource Dependence
Economic Performance
topic Conexões políticas
Corrupção
Dependência de recursos
Desempenho econômico
Political Connections
Corruption
Resource Dependence
Economic Performance
description Objective: To investigate the effect of political connections and corruption on corporate economic performance in firms convicted of corruption by the Securities and Exchange Commission under the Foreign Corrupt Practices Act (FCPA). Method: The sample consisted of 131 firms, with 138 convictions received between the passage of the FCPA in 1978 and 2019. The collected data were submitted to descriptive statistics, comparison of means and multiple linear regression. Main Results: Corporate economic performance was positively explained by a combination of political connections and corruption. Performance was observed to rise over time in firms engaged in such practices, with the highest performance in the year of the conviction. Relevance / Originality: Our study fills a gap in the literature by correlating, in integrated manner, political connections and corruption with corporate economic performance, and by providing a longitudinal analysis of economic performance in demonstrably corrupt firms. Theoretical / Methodological Contributions: The study contributes to the literature by harmonizing the constructs of political connections and corruption with Resource Dependence Theory. Our results are relevant to organizations, the State and stakeholders in general and may subsidize decisions and policies for the control of corruption and maintenance of covenants. Nevertheless, they also point to socioeconomic dysfunction as these practices are detrimental to the economy at organizational level and, hence, cannot be legitimized, regardless of the desired ends.
publishDate 2023
dc.date.none.fl_str_mv 2023-09-04
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://internext.espm.br/internext/article/view/745
10.18568/internext.v18i3.745
url https://internext.espm.br/internext/article/view/745
identifier_str_mv 10.18568/internext.v18i3.745
dc.language.iso.fl_str_mv por
eng
language por
eng
dc.relation.none.fl_str_mv https://internext.espm.br/internext/article/view/745/498
https://internext.espm.br/internext/article/view/745/500
dc.rights.driver.fl_str_mv Copyright (c) 2023 Danival Sousa Cavalcante, Marcia Martins Mendes De Luca
http://creativecommons.org/licenses/by-nc-sa/4.0
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2023 Danival Sousa Cavalcante, Marcia Martins Mendes De Luca
http://creativecommons.org/licenses/by-nc-sa/4.0
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Escola Superior de Propaganda e Marketing - ESPM
publisher.none.fl_str_mv Escola Superior de Propaganda e Marketing - ESPM
dc.source.none.fl_str_mv Internext - International Business and Management Review ; Vol. 18 No. 3 (2023): September - December
Internext; v. 18 n. 3 (2023): Setembro - Dezembro
1980-4865
reponame:Internext
instname:Escola Superior de Propaganda e Marketing (ESPM)
instacron:ESPM
instname_str Escola Superior de Propaganda e Marketing (ESPM)
instacron_str ESPM
institution ESPM
reponame_str Internext
collection Internext
repository.name.fl_str_mv Internext - Escola Superior de Propaganda e Marketing (ESPM)
repository.mail.fl_str_mv internext@espm.br
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