IS CORRUPTION DETRIMENTAL FOR STOCK RETURNS? EVIDENCE FROM A PANEL OF LATIN AMERICAN FIRMS (2004-2013): A NOTE

摘要

This paper empirically investigates the impact of national level of corruption on stock returns for a panel of listed firms in Latina America for the period 2004-2013. Two measures of corruption are used. Results are mixed. Only when considering a measure of public capacity in the control of corruption, coefficients exhibit statistically significant relationships. This can be considered a plausible indirect cost of corruption. In fact, if governance of economy loses flexibility in order to prevent corruption, it can also become detrimental for economic returns.