Does state ownership reduce the negative effect of local corruption on firm performance?

2025/01/05 by Xuan Minh Nguyen, Quốc Trung Trần, Thi Huong Dao · 1 voice
Business, Management and Accounting · Computer Science · Social Sciences · #Auditing, Earnings Management, Governance #Corruption and Economic Development #Economic Growth and Development

paper · doi:10.1080/13504851.2025.2450287

openalex publication_date 2025/01/05 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/22

Abstract

Although the effects of corruption and state ownership on corporate performance have been studied for many years, prior studies have not fully addressed how state ownership determines the effect of local corruption on firm performance. As a transition economy, Vietnam is a good laboratory to fill this research gap. With a sample of 6,015 observations, we find that state ownership mitigates the negative impact of local corruption on firm profitability. In addition, the role of state ownership is stronger for large firms.

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