Economics at your fingertips  

Insecurity versus immaturity: estimating the link between organizational age and indirect risks

Ummad Mazhar ()

Journal of Economic Studies, 2020, vol. 48, issue 3, 616-640

Abstract: Purpose - This study explores the role of firm age as a mediating variable in the link between performance and the risk of terrorism. Theoretically, there can be vulnerabilities, liabilities or learning effects associated with age. Design/methodology/approach - The empirical strategy uses randomness in the occurrence of successful terrorist incidents to estimate the hypothesized link in a sample of 1,600 Pakistani firms. Findings - The results suggest a significant effect of terrorism for organizations lying beyond the 50th percentile of the age distribution. In addition to relevant controls – like size, ownership and location effects – the baseline results withstand alternative empirical specifications and the use of instrumental variables. Originality/value - The study helps us understand the role of firm age in its performance, taking into account the presence of risks posed by weak law and order.

Keywords: Employment growth; Organizational age; Size; Terrorism; Pakistan; D22; F50; L25; L26; M13; P48 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK

Access Statistics for this article

Journal of Economic Studies is currently edited by Professor Mohsen Bahmani-Oskooee

More articles in Journal of Economic Studies from Emerald Group Publishing
Bibliographic data for series maintained by Virginia Chapman ().

Page updated 2022-08-14
Handle: RePEc:eme:jespps:jes-02-2020-0089