School of Management (SoM)

Permanent URI for this community

https://dspace.lib.cranfield.ac.uk/handle/1826/25

Browse

Browsing School of Management (SoM) by Subject "16 Peace, Justice and Strong Institutions"

Now showing 1 - 2 of 2
  • Thumbnail Image
    ItemOpen Access
    Corruption and default risk: global evidence
    (Wiley, 2025-12-31) Nadarajah, Sivathaasan; Atif, Muhammad; Tawiah, Vincent; Liu, Jia; Wood, Geoffrey
    The extant literature explores the consequences of corruption on firms’ growth and survival. However, its impact on default risk remains unexplored. On the basis of a sample of 189,109 firm‐years from 2004 to 2021 across 47 countries, our study reveals that a one standard deviation increase in corruption is associated with an 11.3% increase in default risk. Our channel analysis identifies information asymmetry and managerial risk‐taking as key mechanisms through which corruption influences default risk. This adverse effect is particularly pronounced in countries with opaque information environments, weak governance frameworks and inadequate external monitoring of firms. We further highlight the detrimental impact of corruption on firms’ borrowing costs and banks’ loan performance. Our study emphasizes the importance of enhancing information transparency and implementing stringent control mechanisms as a basis of mitigating corruption's detrimental effects across a range of different socio‐political contexts.
  • Thumbnail Image
    ItemOpen Access
    Impact of political and legal environments on international trade
    (Springer, 2024-11-07) Abugre, James Atambilla; Nellis, Joe; Ofosu-Dorte, David; Ocran, Matthew Kofi; Abor, Joshua Yindenaba
    International trade has become increasingly important in the functioning of the global economy as a result of financial globalization and differences in resource endowments, prompting extensive economic research and increased demand for regional and global integration among nations and continents. International trade is one of the most salient changes in the world economy since 1980. However, many nations and other regional economic blocs have over the years instituted trade restrictions, tariffs, trade policies such as subsidies, and tax waivers among others to harness the potentials of economic comparative advantages in and within their jurisdictions. Political ideologies, instability, and insurgencies and risks are important factors that affect international trade across the globe. Legal regimes are equally important factors that determine the flow of free trade among nations. Civil and common law countries which have different focus of trade regulations and dividend policies are critical matters that affect trade decisions among MNCs and countries. This chapter examines the political and legal environments of international trade. In this chapter, we provide an overview of the emerging political and legal environments in Africa. We then discuss how the political as well as the legal environments and policy trends impact international trade of African countries.