| dc.description.abstract | Recent corruption scandals have called attention to state-owned companies’ involvement in
corruption. The purpose of this study is to explore whether there are in fact differences
between state-owned and private companies’ exposure to corruption risk. The perceived level
of corruption in a market can be viewed as an important determinant for participating in
corruption (Rose-Ackerman, 1975; 1998). Similarly, a sound corporate culture can reduce
companies’ corruption risk, even for companies operating in high-risk markets (Keig et al.,
2015). Although corporate culture is difficult to measure, increased disclosure of information
can suggest companies’ ethical behaviour.
This thesis consists of a literature review and an empirical study on companies’ exposure to
corruption risk and transparency. We selected ten of the largest state-owned and private
companies in Norway for a qualitative comparison. The twenty companies were selected based
on four requirements; listed on Oslo Stock Exchange, headquartered in Norway, significant
operations abroad, as well as not being categorised as a holding company. Because the
companies operate under the same home-country legislation, we have no assumption about
systematic differences between the companies' performance in the analysis.
Our main findings, however, demonstrate that there are differences between the two groups
related to both exposure to corruption risk, and transparency. In light of the literature review
and the state ownership policy, we identified characteristics of the state as an owner that could
influence corporate decision-making. By looking at exposure to corruption risk and
transparency separately, we were able to determine how state ownership can explain some of
the observed differences between the two groups.
We document that the state-owned companies are more exposed to corruption risk.
Nonetheless, they disclose more information on their anti-corruption initiatives and corporate
governance. However, on the basis of these results, we are unable to conclude the firms’
ethical behaviour. | nb_NO |
