 Terrorism hazard and infrastructure projects: The moderating role of home experience and institutionsAlfredo Jiménez and Nathaniel C. Lupton Journal of Business Research, 2021, vol. 135, issue C, 721-730 Abstract: This paper analyzes the impact of terrorism hazard on the performance of private participation infrastructure projects. Applying transaction cost theory, we hypothesize that terrorism hazard has a negative relationship with infrastructure project completion, and that host government accountability and investor experience with terrorism hazard have opposing impacts on this relationship. Host government accountability, we argue, produces higher indirect costs of managing terrorism hazard, which reduces investor confidence, and reinforces the negative relationship between terrorism hazard and the probability of satisfactory project completion. Conversely, investor’s experience with terrorism hazard increases investor confidence and hence partially mitigates the negative consequences of terrorism hazard which hamper project completion. Hence, the impact of terrorism is weakened for projects led by firms from higher terrorism hazard countries. We find support for our hypotheses using a sample of 5,083 projects in 135 countries from 2002 to 2017. Keywords: Terrorism hazard; Infrastructure projects; Major disasters; Voice and accountability; Uncertainty (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:135:y:2021:i:c:p:721-730 DOI: 10.1016/j.jbusres.2021.07.012 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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