Abstract
As bribery costs and pays, it can be considered as a corporate investment that relies on time horizon. We follow this logic and investigate the impact of CEO career horizon on corporate bribery. While most research tends to believe that bribery is an opportunistic behavior that is short-term oriented, bribery may be implemented as a relational strategy with long-term incentives in emerging markets. As such, CEOs with longer rather than shorter career horizons are prone to make bribery investment because they are able to achieve paybacks during their incumbency. Testing the hypothesis on a sample of 2,915 Chinese listed companies during the period from 2010 to 2018, we find that CEOs with longer career horizons are more likely to engage in corruption. Further, this relationship is weaker for state-owned companies and companies in more market-oriented regions.
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