Research on Firm's Sequential Risk-Taking Entry for Terrorism

다국어 초록 (Multilingual Abstract)

This paper analyzes the cause of firm’s sequential risk-taking entry against terrorist attacks. Although investment to foreign market is an intrinsic attribute for multinational corporations, the risk of terrorist attack influences the decision of investing allocation because of the fear of potential terrorism.
In line with prospect and learning theory, the study show that the curvilinear relationship exists between the re-investment to the vulnerable country and the experience of terrorist attack in invested country, and between the re-investment to the vulnerable country and global experiences. Moreover, higher levels of firm’s slack allow the curvilinear relationship into the easement curve.
On the other hand, the study also shows that the positive relationship between firm’s past performance and sequential risk taking entry. Further, cultural step between Korea and invested country shows the positive effect on sequential risk taking entry.