|dc.description.abstract||The literature provides evidence of a relationship present between bribery, corruption, and terrorism. I could not statistically prove a relationship through multivariate regressions because of limitations in my data and model. Furthermore, because of the cyclical relationship between bribery, corruption, and terrorism, I need a more sophistical model to properly analyze this relationship. However, this is beyond the scope of my research project.
The event study statistically supports that FCPA violations impact firm value over-time. The regression analysis then indicates no relationship between the size of the bribe, amount earned, or penalty on firm-value. Although I could not statistically prove a relationship, the regression indicates there could be a relationship between the sizes of the amount earned and/or penalty on firm-value given more data.
Given all my findings, bribery provides a tangible target for combatting corruption and terrorism. However, FCPA violations may only slightly impact bribery levels. Therefore, other approaches may be necessary if regulators are aiming to decrease corruption and terrorism. Stakeholders should also be aware of the unintentional consequences of bribery, and the effect of bribery on shareholder value if firms are caught and enforced with action. Finally, as the FCPA does not currently serve as a strong enough deterrent, regulators should implement other actions, such as increased monitoring and penalties.||