AFSHIN HAMRABADI

Ph.D. Candidate in Economics and Management

Subsidiary Performance and Risk Behavior

[Specific title and summary are not available due to blind review]

The paper investigates the risk behavior of MNE subsidiaries. Drawing from the BTOF, it suggests that firm risk arises from performance comparisons against a reference point. The study introduces a novel concept of using country-level reference points for MNE subsidiaries and explores how deviations from this target influence subsidiary risk behaviors. Additionally, it examines subsidiary characteristics that moderate this relationship. Through an analysis of foreign subsidiaries in several European countries, the study provides empirical support for its hypotheses, contributing to the understanding of subsidiary risk behavior and expanding the BTOF within the subsidiary context. The findings offer valuable insights for both scholars and practitioners.