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Terrorism and country-level global business failure

Terrorism and country-level global business failure
Terrorism and country-level global business failure
This paper contributes to the literature on business failure by investigating the relationship between terrorism and country-level global business failure. A sample of 174 countries over the period of 2009 to 2015 was used. To proxy for business failure, an insolvency index, which is a component of the World Bank’s Doing Business index, was used. The results of the fixed-effects estimations show that terrorism has a negative and significant relationship with business failure for the full sample. When the sample is divided into developed, developing and fragile states, the results show that terrorism is negatively and significantly associated with business failure in developing and fragile states only. The marginal effects of the interactions show that an increase in terrorist incidents by 100 will reduce business failure in South Asia and Sub-Saharan Africa (SSA) countries by 1% and 0.7%s, respectively. There are also relationships between our control variables relating to measures of financial development and business failure. These findings contribute to our understanding of the effects of terrorism on business failure and how this differs based on whether the country is developing, developed, or a fragile.
0148-2963
Tingbani, Ishmael
410bbf8b-14ee-4bb6-af33-f27028c90a35
Okafor, Godwin
cbb60b29-b4e1-48f7-a088-034a499f3f90
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Zalata, Alaa
0fc2c56d-97ad-44ce-ab31-63ca335dcef6
Tingbani, Ishmael
410bbf8b-14ee-4bb6-af33-f27028c90a35
Okafor, Godwin
cbb60b29-b4e1-48f7-a088-034a499f3f90
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Zalata, Alaa
0fc2c56d-97ad-44ce-ab31-63ca335dcef6

Tingbani, Ishmael, Okafor, Godwin, Tauringana, Venancio and Zalata, Alaa (2018) Terrorism and country-level global business failure. Journal of Business Research. (doi:10.1016/j.jbusres.2018.08.037).

Record type: Article

Abstract

This paper contributes to the literature on business failure by investigating the relationship between terrorism and country-level global business failure. A sample of 174 countries over the period of 2009 to 2015 was used. To proxy for business failure, an insolvency index, which is a component of the World Bank’s Doing Business index, was used. The results of the fixed-effects estimations show that terrorism has a negative and significant relationship with business failure for the full sample. When the sample is divided into developed, developing and fragile states, the results show that terrorism is negatively and significantly associated with business failure in developing and fragile states only. The marginal effects of the interactions show that an increase in terrorist incidents by 100 will reduce business failure in South Asia and Sub-Saharan Africa (SSA) countries by 1% and 0.7%s, respectively. There are also relationships between our control variables relating to measures of financial development and business failure. These findings contribute to our understanding of the effects of terrorism on business failure and how this differs based on whether the country is developing, developed, or a fragile.

Text
Terrorism Country Level Global Business Failure Final Manuscript August 2018 - Accepted Manuscript
Restricted to Repository staff only until 29 May 2020.
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More information

Accepted/In Press date: 29 August 2018
e-pub ahead of print date: 7 September 2018

Identifiers

Local EPrints ID: 423780
URI: https://eprints.soton.ac.uk/id/eprint/423780
ISSN: 0148-2963
PURE UUID: 57bf69b1-5a39-427f-929f-0b8ef5a7501c
ORCID for Venancio Tauringana: ORCID iD orcid.org/0000-0002-1433-324X
ORCID for Alaa Zalata: ORCID iD orcid.org/0000-0003-2018-4313

Catalogue record

Date deposited: 01 Oct 2018 16:30
Last modified: 10 Dec 2019 01:41

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