How Corruption and Government Dependency Affect Cash Holdings? A Cross-Sectional Study of Twenty Countries

No Thumbnail Available
Files
bachelor_Varheenmaa_Aaro_2016.pdf (987.67 KB)
Journal Title
Journal ISSN
Volume Title
School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.
Date
2016
Major/Subject
Mcode
Degree programme
Rahoitus
Language
en
Pages
25
Series
Abstract
This study provides new evidence on impacts of corruption. Consistent with Smith (2016) and Caprio et al. (2013), operating in a corrupt country decreases cash balances in the sample of 10,265 firms from twenty countries. Adding to the prior literature, the study provides evidence that government dependent firms in corrupt countries hold even less cash than non-government dependent firms do. The finding holds especially with firms with real size below the sample average. The findings are robust to several additional tests.
Description
Thesis advisor
Önal, Bynuamin
Keywords
corruption, government dependency, cash holdings, rent-seeking
Other note
Citation