ABSTRACT. The globalizations of capital markets in
the last 20 years has led to a historic degree of financial
integration in the world. It is clear, however, that globalization
is not conducive to a complete homogeneity of
financial markets and institutions. Among others, one
element of diversity is the importance of the impact of
corruption in emerging countries. Corruption decreases
the credibility of financial institutions and markets.
Scandals and unethical behavior in financial institutions
erode confidence in such firms. Relying on neoinstitutional
literature, this article focuses on the link between
corruption and organizational isomorphism in financial
institutions in emerging countries. Therefore, our aim is
to examine the institutional reasons for corruption in
financial institutions in emerging countries. Our structural
equation model is based on empirical research in financial
institutions in emerging countries. A questionnaire was
administrated to 70 top executives of financial institutions
in 18 different emerging countries.