Top of page

Notice
Monday, February 16, 2026: For the President's Day holiday, The Library will open under normal operating hours.

Book/Printed Material Eat, drink, firms and government an investigation of corruption from entertainment and travel costs of chinese firms

View Enlarged Image

About this Item

Title

  • Eat, drink, firms and government an investigation of corruption from entertainment and travel costs of chinese firms

Summary

  • "Entertainment and Travel Costs (ETC) is a standard expenditure item for Chinese firms with an annual amount equal to about 20 percent of total wage bills. We use this objective accounting measure as a basis to analyze the composition of ETC and the effect of ETC on firm performance. We rely on the predictions from a simple but plausible model of managerial decision-making to identify components of ETC by examining how the total ETC responds to different environmental variables. In our empirical analysis we find strong evidence that firms. ETC consists of a mix that includes bribery to government officials both as "grease money" and "protection money," expenditures to build relational capital with suppliers and clients, and managerial excesses. ETC overall has a significantly negative effect on firm performance, but its negative effect is much less pronounced for those firms located in cities with low quality government service, those who are subject to severe government expropriation, and those who do not have strong relationship with suppliers and clients. Our findings have important implications on how to effectively curb corruption"--National Bureau of Economic Research web site.

Names

  • Cai, Hongbin, 1967-
  • Fang, Hanming
  • Xu, Lixin Colin
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2005.

Headings

  • -  Business enterprises--Political aspects--China
  • -  Expense accounts--China
  • -  Political corruption--China

Notes

  • -  Title from PDF file as viewed on 9/23/2005.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2005618997

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

Additional Metadata Formats

Rights & Access

More about Copyright and other Restrictions

For guidance about compiling full citations consult Citing Primary Sources.

Cite This Item

Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Cai, Hongbin, Hanming Fang, Lixin Colin Xu, and National Bureau Of Economic Research. Eat, Drink, Firms and Government an Investigation of Corruption from Entertainment and Travel Costs of Chinese Firms. Cambridge, MA: National Bureau of Economic Research, 2005. Pdf. https://aj.sunback.homes/item/2005618997/.

APA citation style:

Cai, H., Fang, H., Xu, L. C. & National Bureau Of Economic Research. (2005) Eat, Drink, Firms and Government an Investigation of Corruption from Entertainment and Travel Costs of Chinese Firms. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://aj.sunback.homes/item/2005618997/.

MLA citation style:

Cai, Hongbin, et al. Eat, Drink, Firms and Government an Investigation of Corruption from Entertainment and Travel Costs of Chinese Firms. Cambridge, MA: National Bureau of Economic Research, 2005. Pdf. Retrieved from the Library of Congress, <aj.sunback.homes/item/2005618997/>.