Does local corruption influence corporate risk-taking? Evidence from Vietnam’s anti-corruption campaigns

Abstract This study examines the impact of local corruption on corporate risk-taking in the Vietnamese market. Firms located in provinces with higher corruption take less risk, and this effect is attenuated during Vietnam’s anti-corruption campaigns. Companies headquartered in financial centers engage in less risk-taking than those in non-financial centers, whereas state-owned enterprises exhibit lower risk-taking than non-state-owned firms. The negative relationship between local corruption and corporate risk-taking is attenuated for firms with higher foreign ownership.