The “grabbing hand” or the “helping hand” view of corruption: Evidence from bank foreign market entries
This study adopts a resource perspective to explore a non-linear relationship between corruption and two measures of bank foreign market commitment, the capital invested and the share of equity, on a sample of 131 bank entries in forty host countries. Our findings support a U-shaped relationship providing evidence of the “grabbing hand” view at low to moderate levels of corruption and, supporting the “helping hand” view at high levels of it. In addition, market-seeking motives are found to have a positive moderating effect on this relationship. This study contributes to the long-standing debate about the effects of corruption on FDI.
Year of publication: |
2014
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Authors: | Petrou, Andreas P. ; Thanos, Ioannis C. |
Published in: |
Journal of World Business. - Elsevier, ISSN 1090-9516. - Vol. 49.2014, 3, p. 444-454
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Publisher: |
Elsevier |
Subject: | Banking | Corruption | Foreign market commitment | Market-seeking | Liability of foreignness |
Saved in:
Online Resource