How do firm linkages with government reduce intensity of government corruption?

This study explores the relationship between network linkages and the intensity of government corruption. Based on resource dependence theory and institutional theory, we argue that linkages with government could enhance firm¡s legitimacy and reduce the environment uncertainty, thereby avoiding potential government corruption problems. We specify three types of linkages with government (governments as founders, shareholders, and clients) to test our theory. The empirical findings from a database of 1,034 firms in 23 emerging countries indicate that firms founded by governments and serving governments will have less government corruption problems.