Regression results. Dependent variable: Subsidiary risk
| Variables | Model 1 | Model 2 | Model 3 | Model 4 | Model 5 |
|---|---|---|---|---|---|
| Industry average performance | −0.0334*** | −0.0285** | −0.0291** | −0.0261** | −0.0214* |
| (0.00985) | (0.00977) | (0.00977) | (0.00976) | (0.00974) | |
| Subsidiary performance | −0.0719*** | −0.145*** | −0.144*** | −0.145*** | −0.144*** |
| (0.00153) | (0.00219) | (0.00222) | (0.00222) | (0.00222) | |
| Age | −0.0225*** | −0.0210*** | −0.0199*** | −0.0201*** | −0.0198*** |
| (0.00118) | (0.00117) | (0.00116) | (0.00116) | (0.00115) | |
| Size | −0.000153*** | −0.000148*** | −0.000145*** | −0.000149*** | −0.000145*** |
| (0.0000148) | (0.0000147) | (0.0000146) | (0.0000146) | (0.0000146) | |
| Slack | −0.00964* | −0.00993* | −0.0114** | −0.0121** | −0.00956* |
| (0.00443) | (0.00439) | (0.00436) | (0.00437) | (0.00436) | |
| Shareholder funds | −0.000000175*** | −0.000000151*** | −0.000000149*** | −0.000000145*** | −0.000000148*** |
| (4.01e−08) | (3.97e−08) | (3.92e−08) | (3.92e−08) | (3.92e−08) | |
| First-level | −0.110* | 0.111* | 0.0967 | 0.0987 | 0.0970 |
| (0.0547) | (0.0545) | (0.0540) | (0.0540) | (0.0540) | |
| Host country market size | −7.753*** | −7.234*** | −6.966*** | −6.872*** | −6.522*** |
| (0.285) | (0.283) | (0.281) | (0.281) | (0.308) | |
| Host country wealth | 0.470*** | 0.437*** | 0.388*** | 0.430*** | 0.381*** |
| (0.0150) | (0.0149) | (0.0157) | (0.0150) | (0.0187) | |
| GUO country market size | −0.0989*** | −0.00274 | −0.00290* | −0.00253 | −0.00286* |
| (0.0192) | (0.00147) | (0.00146) | (0.00146) | (0.00146) | |
| GUO country wealth | −0.00231 | −0.0977*** | −0.105*** | −0.0931*** | −0.102*** |
| (0.00148) | (0.0190) | (0.0189) | (0.0189) | (0.0189) | |
| GUO power distance | 0.00492* | 0.00415 | 0.00338 | 0.00342 | 0.00352 |
| (0.00224) | (0.00222) | (0.00220) | (0.00220) | (0.00220) | |
| GUO individualism | 0.00738*** | 0.00630*** | 0.00694*** | 0.00593** | 0.00643*** |
| (0.00186) | (0.00184) | (0.00183) | (0.00183) | (0.00183) | |
| GUO uncertainty avoidance | −0.00870*** | −0.00960*** | −0.00865*** | −0.00908*** | −0.00878*** |
| (0.00139) | (0.00138) | (0.00137) | (0.00137) | (0.00137) | |
| Performance above aspiration | 1.610*** | 1.625*** | 1.613*** | 1.606*** | |
| (0.0347) | (0.0349) | (0.0348) | (0.0348) | ||
| Power distance | −0.243*** | ||||
| (0.0372) | |||||
| Performance above aspiration × Power distance | −0.132*** | ||||
| (0.0205) | |||||
| Individualism | −0.117*** | ||||
| (0.0288) | |||||
| Performance above aspiration × Individualism | 0.188*** | ||||
| (0.0201) | |||||
| Uncertainty avoidance | −0.124** | ||||
| (0.0380) | |||||
| Performance above aspiration × Uncertainty avoidance | −0.316*** | ||||
| (0.0205) | |||||
| Constant | 159.2*** | 149.5*** | 145.8*** | 141.8*** | 136.3*** |
| (5.619) | (5.576) | (5.532) | (5.553) | (5.991) | |
| Number of observations | 128,775 | 128,775 | 127,187 | 127,187 | 127,187 |
| R-squared | 0.0619 | 0.0774 | 0.0768 | 0.0770 | 0.0781 |
| F | 61.40*** | 85.42*** | 82.12*** | 82.35*** | 84.03*** |
| Variables | Model 1 | Model 2 | Model 3 | Model 4 | Model 5 |
|---|---|---|---|---|---|
| Industry average performance | −0.0334*** | −0.0285** | −0.0291** | −0.0261** | −0.0214* |
| (0.00985) | (0.00977) | (0.00977) | (0.00976) | (0.00974) | |
| Subsidiary performance | −0.0719*** | −0.145*** | −0.144*** | −0.145*** | −0.144*** |
| (0.00153) | (0.00219) | (0.00222) | (0.00222) | (0.00222) | |
| Age | −0.0225*** | −0.0210*** | −0.0199*** | −0.0201*** | −0.0198*** |
| (0.00118) | (0.00117) | (0.00116) | (0.00116) | (0.00115) | |
| Size | −0.000153*** | −0.000148*** | −0.000145*** | −0.000149*** | −0.000145*** |
| (0.0000148) | (0.0000147) | (0.0000146) | (0.0000146) | (0.0000146) | |
| Slack | −0.00964* | −0.00993* | −0.0114** | −0.0121** | −0.00956* |
| (0.00443) | (0.00439) | (0.00436) | (0.00437) | (0.00436) | |
| Shareholder funds | −0.000000175*** | −0.000000151*** | −0.000000149*** | −0.000000145*** | −0.000000148*** |
| (4.01e−08) | (3.97e−08) | (3.92e−08) | (3.92e−08) | (3.92e−08) | |
| First-level | −0.110* | 0.111* | 0.0967 | 0.0987 | 0.0970 |
| (0.0547) | (0.0545) | (0.0540) | (0.0540) | (0.0540) | |
| Host country market size | −7.753*** | −7.234*** | −6.966*** | −6.872*** | −6.522*** |
| (0.285) | (0.283) | (0.281) | (0.281) | (0.308) | |
| Host country wealth | 0.470*** | 0.437*** | 0.388*** | 0.430*** | 0.381*** |
| (0.0150) | (0.0149) | (0.0157) | (0.0150) | (0.0187) | |
| GUO country market size | −0.0989*** | −0.00274 | −0.00290* | −0.00253 | −0.00286* |
| (0.0192) | (0.00147) | (0.00146) | (0.00146) | (0.00146) | |
| GUO country wealth | −0.00231 | −0.0977*** | −0.105*** | −0.0931*** | −0.102*** |
| (0.00148) | (0.0190) | (0.0189) | (0.0189) | (0.0189) | |
| GUO power distance | 0.00492* | 0.00415 | 0.00338 | 0.00342 | 0.00352 |
| (0.00224) | (0.00222) | (0.00220) | (0.00220) | (0.00220) | |
| GUO individualism | 0.00738*** | 0.00630*** | 0.00694*** | 0.00593** | 0.00643*** |
| (0.00186) | (0.00184) | (0.00183) | (0.00183) | (0.00183) | |
| GUO uncertainty avoidance | −0.00870*** | −0.00960*** | −0.00865*** | −0.00908*** | −0.00878*** |
| (0.00139) | (0.00138) | (0.00137) | (0.00137) | (0.00137) | |
| Performance above aspiration | 1.610*** | 1.625*** | 1.613*** | 1.606*** | |
| (0.0347) | (0.0349) | (0.0348) | (0.0348) | ||
| Power distance | −0.243*** | ||||
| (0.0372) | |||||
| Performance above aspiration × Power distance | −0.132*** | ||||
| (0.0205) | |||||
| Individualism | −0.117*** | ||||
| (0.0288) | |||||
| Performance above aspiration × Individualism | 0.188*** | ||||
| (0.0201) | |||||
| Uncertainty avoidance | −0.124** | ||||
| (0.0380) | |||||
| Performance above aspiration × Uncertainty avoidance | −0.316*** | ||||
| (0.0205) | |||||
| Constant | 159.2*** | 149.5*** | 145.8*** | 141.8*** | 136.3*** |
| (5.619) | (5.576) | (5.532) | (5.553) | (5.991) | |
| Number of observations | 128,775 | 128,775 | 127,187 | 127,187 | 127,187 |
| R-squared | 0.0619 | 0.0774 | 0.0768 | 0.0770 | 0.0781 |
| F | 61.40*** | 85.42*** | 82.12*** | 82.35*** | 84.03*** |
Note(s): Standard errors in parentheses: *p < 0.05, **p < 0.01, ***p < 0.001