Corruption and corporate investment efficiency around the world

Purpose The paper investigates the effect of corruption on corporate investment efficiency around world. Design/methodology/approach sample includes 218,350 observations from 30,074 firms across 42 countries. authors measure based Corruption Perception Index (CPI) Transparency International, Control (CCI) World Bank and International Country Risk Guide. Findings find that is negatively related to efficiency. robustness checks with different measures alternative regression approaches show consistent findings. Moreover, also stronger (weaker) in strong (weak) shareholder protection Originality/value has two important contributions literature. First, it shows environment a determinant Second, legal shareholders can mitigate negative