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

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School of Business | Bachelor's thesis
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Authors

Date

2016

Department

Rahoituksen laitos

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

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https://urn.fi/URN:NBN:fi:aalto-201708176540

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[kand] Kauppakorkeakoulu / BIZ