Guo, Chiquan; Kutlu, Levent; Heo, Yuna; Kroll, Mark - 2023
We examine how political corruption affects advertising spending. According to agency theory, managers of firms have a … cash for bribery. However, when it comes to advertising spending, based on a two stage least square estimation method, we … find firms whose headquarters are in more corrupt states invest less in advertising than their peers whose headquarters are …