In the original language
Corruption is a ubiquitous societal problem that significantly influences cor porate investment decisions in the international economic environment of to day. Considerable attention is paid primarily to the economic effects of cor ruption. Its influence on foreign direct investment is one of the topics investi gated. Some studies show that corruption deters foreign investors from mak ing known investments in a country. However, some studies prove that this may not be the case at all and that corruption can, on the contrary, attract companies from certain countries to invest. This paper aims to explore in depth the multifaceted impact of corruption on foreign direct investment and dissect its role in corporate strategic choice, risk management, and sustain able development. Through the comprehensive use of literature research, case analysis, and theoretical discussion, the relevant multiple linear regres sion model is established. This paper adopts the corruption perception index published by Transparency International as the core independent variable and uses the panel data of 28 countries or regions from 1995 to 2022 to estimate the model and verify the relevant hypotheses. The results show that the effect of corruption on FDI is related to the level of corruption. When the corruption level is low, the breeding of corruption has a significant inhibitory effect on foreign investment, but when the corruption level is high, the in crease in corruption perception does not show a significant linear relation ship with foreign direct investment. By delving into the impact of corruption on corporate investment decisions, this paper is expected to provide business managers, policymakers, and academic researchers with practical insights and promote a deeper understanding of this complex topic.