Article summary The Impact of Corruption on Liquidity, Execution Risk,

Summary The Impact of Corruption on Liquidity, Execution Risk, and Foreign Equity Investments in International Capital Markets - Article casefulWhile the article suggest that the well-functioning of a financial enterprise is only possible with the reliability of sustainable market conditions and crystal clear transparency of transactions. umteen authors like Shleifer and Eleswarapu consider financial business confronts several conditions that pose dangerous threat to liquidity most of them are centered to corruption, government involvement in the financial sector and malpractices due to poor management.This study is an improvement to various findings mentioned in the previous literature of many economists but they were initially limited macroeconomics or firm- take aim corporate finance studies without consideration of the impact of t the constraints as a relationship with international financial crises. The authors summarize the impact of corruption into three ship canal possible reduction in foreign portfolio investment inflow, negative coefficient on the non linear for on equity investment and in some contexts, inconsistent expression of foreign investment foreign investment in countries with different levels of corruption. The elaboration of the research element is divided by the authors in to six segments like relevant literature, hypothesis, data selection, empirical methodology, empirical results and the conclusion.Earlier literatures notify the significant reduction in market investment as a direct co-efficient to increased level of corruption. State level political corruption is identified as the deed of government of a country misallocating or selling state capital coin and property to private parties. As per the transparency index, for a complete fall in the equity, it was calculated that one-third effect of corruption was enough. Therefore, countries like Hong Kong and Singapore stir set up agencies acting against corruption whereby they secure d better inflow. However, corruption takes a positive note as it saves the time and