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4.2 The relationship between Business Obstacles and Firm’s Bribery Behavior related Operation License

Table 6
Result regarding Bribery of Operation License (OPBRIBE)
Variables Coef. Odds Ratio Average marginal effect dy/dx P>z
PERMIT 1.0 2.71 0.10 0.13

EXP -0.1- 0.91 -0.01 0.09
AUDIT -0.91 0.40 -0.09 0.39
COURT -1.10 0.33 -0.11 0.01
SIZE 0.33 1.39 0.03 0.01
AGE -0.03 0.97 -0.00 0.45
COMP -0.53 0.59 -0.05 0.41
_cons -4.38 0.01 0.15

The H2 hypothesis has not been proven in operating licensing bribes. However, there are 2 variables that are significant
to the opportunity for bribery for operating permits. Just as the opportunity for import licensing bribes, the perception
of the judiciary also has a negative effect. Each decreased perception of the judiciary by as much as 11%, increasing
the chances of operating licensing bribes by 0.3 times than normal. The bigger the company, the higher the chance of
bribery for operating licenses.

2.5 Conclusion
The purpose of this research examined the relationship between business obstacles and probability of firm’s bribery
behavior related import and operation license. Hypotesis 1 has proven that the element pressure or Fraud Triangle
Theory has significant positive relation with firm’s bribery behavior. Nevertheless model 2 has not proven the
significance relationship between business obstacles and firm’s bribery behavior.

This research could be an input for the government. Policy regarding licensing also needs to be reviewed so that it does
not become a pressure on the company. Since permit obstacle could be a probability of bribery.

One of the limitations in this study was the use of non-parametric analysis methods. The sample in this study was
mostly answered that they were not bribes. Disclosure related to bribery was rare, even in anonymous surveys like
the one conducted by the World Bank, companies often don’t answer, don’t know, or even refuse. This causes the data
become unusable.

Business obstacles and bribery are among the issues that need to be addressed because they can reduce productivity.
The lack of disclosure regarding bribery created information asymmetry and unfair competition. Future studies may
use non-anonymous survey data and add numerical variables to financial reports.

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