What sorts of conditions make some countries more prone to corruption than the others? This is an important question … for understanding how corruption arises and how to combat it. The present paper attempts to answer this question by … exploring the link between the size of the country and corruption. Economic theory suggests advantages and disadvantages of …

finance, exposure to corruption, and sales growth. Relying on a data set of more than 70,000 firms in 121 countries, the … financial constraints than unaudited firms. On the other hand, audited firms face a significantly higher level of corruption … considerations of the endogeneity of auditing and to alternative measures of corruption and financial constraints. The findings …