SEMINAR SERIES
Management Seminar
Ishtiaq Pasha MAHMOOD（Professor, National University of Singapore (NUS) Business School）
- Date&Time:
- 2025.7.1 (Tue) 15:15-16:45
- Venue:
- Lecture Room 3 on 3F, Research Bldg. No.2, Yoshida Campus, Kyoto University
- Language:
- English
- Contact:
- Asli M. COLPAN
(Title)
"To Absorb or to Avoid: How firm size shapes firm response to corruption"
Abstract:
A growing body of research has documented that firms differ substantively in how they respond to corrupt environments. However, the extant research provides little clarity on why some firms actively absorb corruption while others avoid it. We examine the role of firm size in shaping the effects of corruption on firms’ outputs and productivity. Since both large and small firms play unique and vital roles in economic growth by driving productivity and creating employment respectively, an understanding of how firm size shapes the effect of corruption is crucial. Using firm level data from Indonesia, a country with endemic corruption and one of the fastest growing economies in Asia, we find that relative to small firms, large firms suffer more from corruption on productivity but experience a higher output growth. To unpack the underlying mechanisms behind these divergent outcomes, we further empirically examine how corruption reshapes firm operations. Our mechanism suggests that smaller firms tend to avoid corruption by relocating away from corruption and reducing workforce while larger firms absorb corruption by expanding their non-production employment including hiring more legal, compliance, or administrative staff.
If you would like to participate in this seminar, please register yourself from the Google form below, by 9:00 on July 1st (Tue), 2025.
https://forms.gle/mnZZwDiM6JmCviNA9
Inquiries (Administrative staff): sakata.mito.2u[at]kyoto-u.ac.jp (Please replace [at] with @)