The trickster’s legacy: The folklore roots of corruption

• Folklore portraying antisocial behavior as successful is associated with higher corruption. • Folklore emphasizing punishment of antisocial behavior is associated with lower corruption. • Folklore is associated with both demand- and supply-side corruption behaviors of firms. This study examines the role of oral traditions in shaping corruption. Using firm-level data on a large sample of 82,922 firms covering 287 cultural societies in 125 countries, we analyze how the representation of antisocial behavior in folklore is associated with corruption. Our findings reveal that societies with folklore portraying antisocial behaviors as successful tend to exhibit higher levels of corruption, while those with oral traditions emphasizing the negative outcomes of such behaviors experience lower corruption. By distinguishing demand- and supply-side corruption channels, we document that folklore is associated with variations in bribe-related decisions, both for firms that are initiators and targets. Thus, our work contributes to the understanding of deep-rooted cultural determinants of corruption.