Quantifying the legacy of trauma: The long-term impact of the African slave trade on contemporary firm corruption

Authors

• Yu Liu, The University of Texas Rio Grande ValleyFollow
• Jian Xu, Fort Hays State University
• Yifan Zhou, University of Leicester

Document Type

Article

Publication Date

1-1-2026

Abstract

This study examines the long-term impact of the African slave trade on present-day corporate corruption in Africa. Analyzing data from over 30,000 firms across 41 African countries between 2006 and 2021, we find a robust positive relationship between historical slave export and modern firm-level corruption. The results suggest that ethnic fractionalization, diminished trust, and weak institutions are potential channels linking the slave trade to current corruption. In countries with a history of extensive slave export, firms are more likely to engage in tax avoidance, circumvent government interactions, and operate informally due to prevalent corruption.

Comments

Preprint: https://hdl.handle.net/2381/30329038

Recommended Citation

Liu, Y., Xu, J. and Zhou, Y., 2025. Quantifying the legacy of trauma: The long-term impact of the African slave trade on contemporary firm corruption. Journal of Corporate Finance, p.102884. https://doi.org/10.1016/j.jcorpfin.2025.102884

Publication Title

Journal of Corporate Finance

DOI

https://doi.org/10.1016/j.jcorpfin.2025.102884