The watchers on the wall: Inter-Korean geopolitical risk and firm risk-taking

This article investigates the relationship between Inter-Korean geopolitical risk (IKGPR) and South Korean firms’ risk-taking in context of highly political tensions peninsula. Using a recently developed news-based index risk, our empirical analysis shows an inverse U-shaped IKGPR firm Korea, implying that increases with when is low but becomes prudent high. Such effect on weaker for firms survive wartime (1900–1969) stronger were established after Second War (1966–1969), suggesting role corporate resilience to motivating differences behaviors. Further analyses indicate tend take less nuclear higher they are more technology-oriented. JEL CLASSIFICATION: G30, P00, O31