Do anti-bribery laws reduce the cost of equity? Evidence from the UK Bribery Act 2010

Kim, Suhee, Rees, William and Sila, Ben (2020) Do anti-bribery laws reduce the cost of equity? Evidence from the UK Bribery Act 2010. Journal of Business Finance & Accounting, 47 (3-4), 438-455. (doi:10.1111/jbfa.12434).

Record type: Article

Abstract

We examine the impact of the UK Bribery Act 2010 on the implied cost of equity. We find a significant reduction in the cost of equity amongst UK firms with high bribery exposure after the passage of the Bribery Act. We further show that the Bribery Act improves internal control systems and increases stock liquidity of firms with high bribery exposure. Our results suggest that more stringent anti-bribery regulations are not always bad for the firm.

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Business Fin Account - 2020 - Kim - Do anti‐bribery laws reduce the cost of equity Evidence from the UK Bribery Act 2010 - Version of Record

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Accepted/In Press date: 16 January 2020

Published date: 2020

Identifiers

Local EPrints ID: 470908

URI: http://eprints.soton.ac.uk/id/eprint/470908

DOI: doi:10.1111/jbfa.12434

ISSN: 0306-686X

PURE UUID: 953af70d-0434-4a8e-b3af-99c9cfc710c5

ORCID for Suhee Kim:

orcid.org/0000-0003-0782-016X

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Date deposited: 20 Oct 2022 16:52

Last modified: 17 Mar 2024 04:13

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Contributors

Author: Suhee Kim

Author: William Rees

Author: Ben Sila

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