The watchers on the wall: Inter-Korean geopolitical risk and firm risk-taking

IF 3.8 4区 管理学 Q2 BUSINESS
Khanh Hoang, Huy Viet Hoang, Dao Le Trang Anh
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引用次数: 0

Abstract

This article investigates the relationship between Inter-Korean geopolitical risk (IKGPR) and South Korean firms’ risk-taking in the context of highly political tensions in the Korean peninsula. Using a recently developed news-based index of geopolitical risk, our empirical analysis shows an inverse U-shaped relationship between IKGPR and firm risk-taking in South Korea, implying that South Korean firms’ risk-taking increases with IKGPR when IKGPR is low but becomes prudent when IKGPR is high. Such an effect of IKGPR on firm risk-taking is weaker for firms that survive wartime (1900–1969) and is stronger for firms that were established after the Second Korean War (1966–1969), suggesting the role of corporate resilience to geopolitical risk in motivating differences in corporate behaviors. Further analyses indicate that South Korean firms tend to take less risk when the nuclear risk is higher and when they are more technology-oriented. JEL CLASSIFICATION: G30, P00, O31
墙上的观察者:朝韩地缘政治风险和坚定的冒险精神
本文研究了在朝鲜半岛高度政治紧张的背景下,朝韩地缘政治风险(IKGPR)与韩国企业风险承担之间的关系。利用最近开发的基于新闻的地缘政治风险指数,我们的实证分析显示,韩国企业的IKGPR与风险承担之间呈倒u型关系,这意味着当IKGPR较低时,韩国企业的风险承担随着IKGPR的增加而增加,而当IKGPR较高时,韩国企业的风险承担则变得谨慎。这种IKGPR对企业风险承担的影响对于在战争期间幸存下来的公司(1900-1969)来说较弱,而对于在第二次朝鲜战争后成立的公司(1966-1969)来说更强,这表明企业对地缘政治风险的弹性在激发企业行为差异方面的作用。进一步的分析表明,韩国企业在核风险较高和更以技术为导向的情况下倾向于承担较小的风险。凝胶分类:g30、p00、o31
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
7.50
自引率
6.90%
发文量
14
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