The Burden of Corruption: How Financial Sources, Female Ownership, and Climate Actions are associated with Firm Perceptions

Articles in Press

Document Type : Original Article

Author

Ly Hoang Vu

University of Finance – Marketing, Vietnam

10.22067/ijaaf.2026.98818.1663

Abstract

Corruption remains a significant obstacle to firm operations, yet not all firms experience it equally. This study investigates how financial arrangements, climate change mitigation actions, and female ownership and leadership relate to firms' perception of corruption. Drawing on a merged dataset of 72,487 firms across 84 countries from 2018 to 2025, combining Round VI of the Business Environment and Enterprise Performance Survey (BEEPS VI), World Bank Enterprise Surveys, and World Bank Open Data, we estimate regression models using STATA software. Several novel findings emerge. First, borrowing from state-owned banks is positively associated with perceived corruption, while broader credit availability is negatively associated with it. This contrast suggests that the source and accessibility of finance shape firms' exposure to governance failures in opposing ways. Second, the percentage of female ownership is consistently and robustly negatively associated with perceived corruption. Third, firms that adopt climate change mitigation actions report higher levels of perceived corruption. Fourth, losses from extreme weather events are strongly positively associated with perceived corruption, indicating an important correlation between climate vulnerability and governance quality. Finally, small and medium enterprises perceive corruption as a more severe obstacle than large firms, while manufacturing firms perceive significantly less corruption than service-sector firms.

Keywords

Corruption

State-owned banks

Credit availability

Climate change mitigation

Female leadership and ownership

Subjects

• Sustainability

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