Abstract
Using the context of institutional transitions in the emerging economy context of India, we examine the influence of a firm's historical economic policies on its corporate risk-taking. We propose that protectionist and constraining economic policies of the socialist regime inscribe ‘risk-avoidance’ routines on incumbent firms, which continue to persist. Utilizing the data of the Indian economic environment (1956–1991) and analyzing a large sample of Indian firms during 1994–2007, we hypothesize and find the support that level of protectionist imprinting negatively impacts corporate risk-taking in the post-liberalization era. This effect is weakened by the moderating impact of the business group affiliation.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
