How Corruption Eats at Shareholder Value
Article from: OGEL 5 (2003), in Corruption
Summary
Three years of a scandal-ridden bear market have forced investors to look beyond simple numbers and examine 'soft' indicators of value, like management integrity and the quality of risk management. One area that has suddenly burst into the spotlight is corruption. But whereas spectacular abuses have dominated the headlines, it is the more modest and mundane instances of corrupt behaviour that arguably pose the knottiest problem. Few would defend winning business by diverting millions to fund civil wars or line Swiss bank accounts, so although the practice certainly persists, international ...