Multilevel determinants of MNC corruption risk

We explore the multi-level determinants of firm-level corruption risk among multinational corporations (MNCs) in both developed and developing market economies in a comparative context. We argue that institutional and regulatory environments affect MNCs’ anti-corruption performance. We employ a comprehensive measure of MNC corruption risk and find evidence for the influence of country-level institutional and regulatory effects, while firm-level financial characteristics also influence anti-corruption performance. Furthermore, the effects of institutional and regulatory environments differ between developed and developing markets. In general, our framework and results highlight the utility of strong legal and regulatory environments, particularly in developing markets, to combat MNC corruption risk