AFSHIN HAMRABADI

Ph.D. Candidate in Economics and Management

Subsidiary Overperformance and Culture

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

This study contributes to the growing body of research on MNE subsidiaries by investigating their risk-taking behavior through the lens of the BTOF. While previous studies have explored how subsidiaries tend to take more risks as their performance falls below aspirations, this research focuses on situations where subsidiary performance surpasses expectations. By analyzing a comprehensive dataset of foreign subsidiaries situated in the UK, Germany, France, Italy, and Spain, the study reveals that as performance exceeds aspirations, decision-makers within subsidiaries exhibit a different attitude towards risk-taking. Notably, this attitude for risk-taking varies depending on the societal context and the culture of the host country where the subsidiary is located. This contribution enriches the understanding of subsidiary risk behavior and the BTOF by elucidating the underlying conditions shaping such behavior.