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Research Summary
Although there is growing recognition of the importance of nonmarket strategies in ensuring favorable outcomes for firms, most of the research on corporate political activity (CPA) in the U.S. has focused on domestic firms. However, foreign firms are also actively involved in lobbying in the U.S. We identify several predictors of foreign firm CPA using an institutional perspective...
This paper empirically examines the link between firms’ performance and institutional quality using data for firms in 52 countries. We control for potential endogeneity by instruments alternatively based on legal origin and “related-firm” institutions, and by a “bribery” variable. We also use two indicators of institutional quality: firms’ expectations that their contractual and property rights will...
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