Despite growing research attention on corporate corruption in recent years, a notable gap remains in understanding how founding conditions influence firms’ corrupt practices. Drawing on imprinting theory, this study examines how a firm’s informal status at its inception influences subsequent corrupt behaviors. An empirical analysis of 128,601 firms across 158 countries reveals that informal creation, as a deviant behavior, renders an enduring stamp—deviance imprinting—that further encourages subsequent deviance such as corruption. Moreover, we find that deviance imprinting is mitigated by the extensive experience of top managers but reinforced by a performance-oriented culture. Additionally, regulatory quality strengthens the persistence of deviance imprinting, while financial freedom accelerates its decay. This study contributes to the literature of entrepreneurship and corporate corruption by elucidating the enduring impact of founding conditions on firm behavior.
