TY  - BOOK
AU  - Cai, Hongbin
AU  - Fang,  Hanming
AU  - Xu, Lixin Colin
TI  - Eat, Drink, Firms, Government: an Investigation of Corruption from the Entertainment and Travel Costs of Chinese Firms
SN  - 00222186
AV  - HB73 JOU 
PY  - 2011///
CY  - Chicago
PB  - University of Chicago Press
KW  - Business structures
KW  - Chief executive officers
KW  - Entertainment
KW  - Estimated taxes
KW  - Government corruption
KW  - Government officials
KW  - Government services
KW  - Productivity
KW  - Sales taxes
N2  - We propose entertainment and travel costs (ETC) expenditures as a measure of corruption in Chinese firms. These expenses are publicly reported in firms’ accounting books, and on average they amount to about 3 percent of a firm’s total value added. We find that ETC is a mix that includes grease money to obtain better government services, protection money to lower tax rates, managerial excesses, and normal business expenditures to build relational capital with suppliers and clients. Entertainment and travel costs overall have a significantly negative effect on firm productivity, but we also find that some components of ETC have substantial positive returns to firms
UR  - https://doi.org/10.1086/651201
ER  -