Please use this identifier to cite or link to this item:
Appears in Collections:Accounting and Finance Journal Articles
Peer Review Status: Refereed
Title: Business strategies and corruption in SMEs: The impact of business group affiliation, external auditing and international standardisation certification
Author(s): Changwony, Frederick Kibon
Kyiu, Anthony
Contact Email:
Keywords: business group affiliation
business strategy
external auditing
international standards certification
Issue Date: 16-Jan-2023
Date Deposited: 8-Feb-2023
Citation: Changwony F & Kyiu A (2023) Business strategies and corruption in SMEs: The impact of business group affiliation, external auditing and international standardisation certification. <i>Business Strategy and the Environment</i>.
Abstract: We examine the impact of three business strategies separately and in combination on the tendency for firms to engage in corruption. Using a sample of 56,827 firm-year observations for Small to Medium-sized Enterprises (SMEs) over the 2006-2018 period, we find that firms with business group affiliations are more likely to engage in corrupt practices in countries with low business freedom. However, those in countries with high business freedom are less likely to do so. We also find that firms that engage the services of external auditors and adopt international standardization are less likely to be corrupt, especially in countries with weak financial reporting standards. Our results also show that corruption intensity reduces even more for firms that employ the three strategies, whether we consider institutional factors or not. This result holds when we use a three-way interaction term. We conclude that the three strategies are mutually reinforcing, and that firm-level and country-level efforts complement each other in mitigating corruption.
DOI Link: 10.1002/bse.3333
Rights: © 2023 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License (, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.
Notes: Output Status: Forthcoming/Available Online
Licence URL(s):

Files in This Item:
File Description SizeFormat 
Bus Strat Env - 2023 - Changwony - Business strategies and corruption in small___ and medium___sized enterprises The impact of.pdfFulltext - Published Version2.22 MBAdobe PDFView/Open

This item is protected by original copyright

A file in this item is licensed under a Creative Commons License Creative Commons

Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

The metadata of the records in the Repository are available under the CC0 public domain dedication: No Rights Reserved

If you believe that any material held in STORRE infringes copyright, please contact providing details and we will remove the Work from public display in STORRE and investigate your claim.