Factors in multinational valuations: Transparency, political risk and diversification

Foreign Infrastructure Investment in Developing Countries: A Dynamic Panel Data Model of Political Risk Impacts

“…As inferred from Table 1, previous studies e.g. (Henisz, 2000;Doh & Ramamurti, 2003;Kesternich & Schnitzer, 2010;Kyaw et al, 2011;Méon & Sekkat, 2012;Jiménez et al, 2014a;Bekaert et al, 2016), have established that political risk greatly affects FDI and infrastructure investment. Nevertheless, research into the relationship between political risk and FDI on infrastructure investment (FDII) in developing countries, remains limited (Banaitienė et al, 2015;Keeley & Ikeda, 2017).…”

“…Investors crossing international borders face additional risks not encountered at home (Shen et al, 2017). Among the risks, political risk plays a key role with regards to decisions on international expansion, foreign investment, the market value of multinationals, and ownership of multinational firms in host countries (Kesternich & Schnitzer, 2010;Zavadskas, Turskis, & Tamošaitiene, 2010;Kyaw, Manley, & Shetty, 2011;Méon & Sekkat, 2012;Jiménez, Ongena, Peydró, & Saurina, 2014b). Political risk are political events in a country that impact the business climate in such a way as to rupture reasonably expected returns, namely: political changes that influence future cash flows (Howell, 2011;Bekaert, Harvey, Lundblad, & Siegel, 2016).…”

مؤشرات الحوكمة العالمیة وقرارات اقتراض الشركات فی دول مجموعة الثمانیة(باللغة الانجلیزیة)

“…In addition, Demirbag et al, (2007) found that there is a relationship between political risk and firms' performance. The study deduced a positive relationship between, the political risk and the uncertainty about future cash flows and increased cost of debt (Kyaw et al, 2011). Given the higher cost of debts and expected cash flow, it will have a significant effect on the financial performance in terms of decreased profitability of companies (Meyer et al, 2009;Kesternich and Schnitzer, 2010).…”

The Stock and CDS Market Consequences of Political Uncertainty: The Arab Spring

“…The third channel through which political uncertainty affects the economy is asset prices. Kyaw, Manley, and Shetty (2011) show that political risk decreases the value of multinational corporations. Abadie and Gardeazabal (2003) found that stocks of Basque firms performed better than those of non-Basque firms when the truce between ETA and the Spanish government became credible in 1998.…”