Liability of foreignness and anti-corruption reporting in an emerging market: the case of Turkish listed companies

Abstract: This study examines the association between different types of dependency on resources and/or pressures from the international community and the reporting practices on the fight against corruption of companies in an emerging country setting, that of Turkey. More specifically, we focus on the influence of multinationality, cross-listing, and membership of the United Nations Global Compact on this type of reporting. We use ordinal regression analysis to explore the association between the three factors mentioned above and anti-corruption reporting for a sample of Turkish firms on the Borsa Istanbul 100 index, while controlling for some other factors likely to influence anti-corruption reporting. Findings show a low level of reporting. They also suggest that companies with their shares cross-listed and companies which are members of the Uited Nations Global Compact do present higher levels of anti-corruption reporting than their counterparts.