Replication Data for Chapter 3: Ethical Governance in Unethical Locations

Host country corruption poses a significant challenge for multinational corporations expanding internationally, discouraging investment and altering their entry mode preferences. I theorize that one strategy for addressing corruption abroad is to leverage Corporate Social Responsibility (CSR) capabilities to mitigate governance risks. Specifically, I argue that an investing firm’s CSR capabilities strengthen a firm’s preference for greenfield over M&A entry in corrupt host countries. Additionally, I propose that this relationship is stronger for firms based in countries with active enforcement of laws against corruption abroad. The analysis of a dataset of 25,585 multinationals from 99 home countries undertaking 122,775 cross-border entry decisions in 105 host countries supports these arguments. These ideas provide a more nuanced understanding of how ethical firms can manage operations in unethical places.