Unpacking the Link Between Top Manager Gender and Firm Involvement in Bribery

Why do some firms engage in bribery while others do not? We unpack how top manager gender shapes firm involvement in bribery by examining the roles of bribe demand, firm location, and investment in security. Based on a sample of 57,758 firms from 94 countries, we find that having a female top manager is negatively associated with a firm’s likelihood of engaging in bribery, and that bribe demand mediates this relationship. Moreover, we find that the location of the firm moderates the relationship between top manager gender and a firm’s likelihood of receiving a bribe demand. Interestingly, the findings also show that investment in security positively moderates the relationship between having a female top manager and a firm’s likelihood of receiving a bribe demand. Our findings contribute to the business ethics literature, particularly on bribery, and offer relevant managerial and policy implications.