https://scholars.lib.ntu.edu.tw/handle/123456789/459336
Title: | Corruption and business cycle volatility: a corporate governance perspective* | Authors: | Lin, C.-P. Huang, C.-J. Chuang, C.-M. CHENG-MIN CHUANG |
Keywords: | business cycles; Corporate governance; corruption; economic fluctuations; institutions | Issue Date: | 2018 | Journal Volume: | 25 | Journal Issue: | 5 | Start page/Pages: | 586-606 | Source: | Asia-Pacific Journal of Accounting and Economics | Abstract: | This study develops a model arguing that corruption and weak corporate governance institutions magnify economic fluctuations. Corruption increases the difficulty of corporate governance and decreases the costs to controlling families of misusing firm assets as collateral for bank loans and creating credits for their own high-risk business, thus increasing cyclical fluctuations in inflation and production. Consistent with the predictions of the model, our longitudinal analyses covering 155 countries from 1995 to 2015 suggest that corruption increases the Hodrick-Prescott cyclical volatility of inflation and production in the following 10 years. We also find that inflation volatility mediates the relationship between corruption and production volatility. However, corruption does not show significant effects on unemployment fluctuations. © 2017, © 2017 City University of Hong Kong and National Taiwan University. |
URI: | https://scholars.lib.ntu.edu.tw/handle/123456789/459336 | DOI: | 10.1080/16081625.2017.1378114 |
Appears in Collections: | 國際企業學系 |
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