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| The Motivation of Firm Corruption and the "Optimal" Corruption Level |
| XU lei,WANG Le |
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Abstract Because of the linear hypothesis, existing literature have not got an agreement conclusion on the relationship between corruption and business performance. Some scholar’s research shows that there is positive between corruption and business performance, but on the other hand, Some scholar’s research shows that there is negative between corruption and business performance. The conflict between the two empirical view shows the academic understanding of firm corruption is different by scholars. This paper study the relationship between corruption and business performance based on the Weigh options between deal with government and deal with market by firms, and build a quadratic regression model to investigate the “optimal” degree of dealing with government. We use the world bank’s enterprise survey data confirmed the reverse u relationship between corruption and business performance.
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Received: 07 May 2014
Published: 15 September 2014
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Corresponding Authors:
XU lei
E-mail: passionlei@sina.com
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2014, Vol. 
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