The compliance game: Legal endogeneity in anti-bribery settlement negotiations

In line with a wider expansion of global governance tools to prevent and punish corruption, the enforcement anti-foreign bribery laws is increasing. Yet few cases are tested in court; rather, confidential negotiations out-of-court settlements have become norm. Many argue that this favours authorities, since even firms good defence reluctant risk trial when settlement appears safer option, but there very little evidence about what really happens how companies authorities interact during process. Through qualitative research participants for United States Foreign Corrupt Practices Act Kingdom Bribery Act, we find considerable power influence law interpreted implemented. particular, use compliance programs signal character, while willingly accept these symbols as justification settling out court or acting leniently. Companies therefore play key role shaping places where it ambiguous, an interesting example ‘legal endogeneity’, whereby subjects help shape its meaning.