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business could become an opportunity to make bribes. The longer their experience in this business sector is, the top
managers know the weaknesses of the existing regulations. Opportunistic management may resort to bribes to get
around licensing. The existence of corrupt officials can be an opportunity for companies to commit bribes (Abbink et al.,
2018; Fitri et al., 2019; Maulidi, 2020). Another opportunity is when the company is not audited by an external auditor
(Khalil, Saffar, & Trabelsi, 2015). Courage to bribe with the support of the rationalization ability of the bribe actor. This is
subjective. However, the perception of an unfair and corrupt judiciary may be the reason for the perpetrator to justify
his actions (Ariyanto, 2020). So that the hypothesis related to the relationship between pressure on bribery proposed
from this study is as follows:

H1: Business Permit Obstacles has significant positive effect on probability of firm’s bribery behavior related
to Import License.
H2: Business Permit Obstacles has significant positive effect on probability of firm’s bribery behavior related
to Operation License.

2.3 Research Method
3.1 Data
In this paper, we focus to investigate firm’s bribery behaviour in Indonesia, using secondary data. Data drawn from the
World Bank, 2015 Enterprise Surveys. The World Bank, 2015, Enterprise Surveys incorporate interviews with Indonesian
business owners and top managers from 1320 small, medium, and large enterprises from 2015 through December
2015. After some selection based on our criteria, there are 81 firm-level observations remaining related to operation
bribe and 67 firm-level observastion related to operation bribe.

The Enterprise Surveys Collect both qualitative and quantitative information at the firm level. The surveys asked firm
regarding their business information, such as business location and business type, owner/manager demographics
and characteristics (owner/manager gender, top manager experience), business financial information (net profit
reinvestment proportion, total expense) and information relating to firm accessibility to external financing sources. In
addition, the survey provides responses to questions concerning security of property rights, reliability of legal systems,
competitor, perception of business obstacles and the level of corruption.

We only include who explicitly answered ”yes” or ”no” to the question of based on their experience whether they ”bribe”
or not. We study two kinds of bribery. First is the informal gifts and payments related to application for an import license,
and second related to aplication for an operating license. Furthermore, we include who response to the statement j30c
on scale from 0 to 4, ”As I list some factors that can affect the current operations of a business, please look at this card
and tell me if you think that each factor is No Obstacle, a Minor Obstacle, a Moderate Obstacle, a Major Obstacle, or a
Very Severe Obstacle to the current operations of this establishment”.

Table 1 Descriptive Statistics IMBRIBE
Variables Obs Mean S.D. Min. Max.
IMBRIBE 81 0.31 0.46 0 1
PERMIT 81 0.74 0.89 0 4
EXP 81 15.54 8.32 1 40

AUDIT 81 0.80 0.40 0 1
COURT 81 2.58 1.06 1 4
SIZE 81 25.81 3.70 17.21 31.41
AGE 81 26 11.97 5 59
COMP 81 1.04 1.11 0 4
Remarks: IMBRIBE = bribery related Import license; PERMIT= business obstacles; EXP= top manager experience; AUDIT= using external auditor or not, dummy variable; COURT=
perception of justice; SIZE= firm size measured by Ln sales; AGE= firm age; COMP= perception of competitor as obstacles.

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