After enactment of strict anti-bribery legislation in the UK a few years ago, sales of British firms in corruption-prone regions of the world grew 6pc more slowly than those of comparable European firms, says Stefan Zeume of the University of Michigan. Moreover, UK companies operating in such regions displayed a drop in firm value after enactment of the law. Taken together, the findings suggest that bribes are indispensable for doing business in certain parts of the world.

(Source: Stephen M. Ross School of Business, University of Michigan)

Published in Dawn, Economic & Business, August 24th, 2015

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