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

What is it about?

Businesses in developing countries face many risks. The risk of insecurity is one of them. This paper studies how businesses cope with this risk. The specific country it focuses on is Pakistan which is a country facing the threat of terrorism for the last many years. Using a dataset of more than 1600 firms, it finds that businesses of age 20 years or more are badly affected by the risk of terrorism compared to those who are between 13 and 20 years of age. These findings imply that more mature businesses are more sensitive to macroeconomic stability and changes in external risks.

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