We test the hypothesis that U.S. corporations headquartered in states with greater public corruption are also prone to more unethical behavior when operating abroad. We exploit passage of Foreign Corrupt Practices Act (FCPA) that curtailed bribery of foreign officials and find firms in corrupt...

The positive relationship between institutional quality and “official” income is well-documented. It is unclear, however, if this relationship holds once the “unofficial” economy is accounted for. An improvement in institutional quality tends to shift production out of the shadow and...

Although frequently considered an independent and opposing force to capital, modern labor unions face many of the same pressures as businesses. Using a novel sample of union financial statements, we document that unions behave like corporations in a variety of ways. Unions often have...