Country Risk Measures: How Risky Are They?

Country happen measures: how risky are they? Jennifer M. Oetzel[pic],a, Richard A. Bettis[pic],a and Marc Zenner[pic],a a The Kenan-Flagler occupancy School, The University of North Carolina, Campus Box 3490, McColl Building, Chapel Hill, NC 275993490, USA Available online 22 whitethorn 2001. Abstract As global competition drives corporations into distant, unfamiliar markets, managers are inquiring for ways to minimize their uncertainty. When formulating their strategies for such environments, managers frequently rely on ground risk synopsis. Assuming that country risk analysis is an objective, fact-finding process, many managers fail to question these risk reports. The contract of this paper is on the usefulness of these country risk measures. Specifically, the dissolve is to investigate the extent to which country risk measures can expect periods of intense instability. We examine eleven widely used measures of country risk across seventeen countries during a nineteen-year time period. bills fluctuations are used as a surrogate for overall country risk. Results from the empirical analysis indicate that commercial risk measures are very poor at predicting actual cognise risks. This result raises important questions about the usefulness of these measures and why managers unflurried choose to use them.

Article Outline Country risk analysis semipolitical and economic risk Review of past studies Theoretical background: punctuated residue theory and country risk analysis possibleness 1: Hypothesis 2: Research methodology Risk measures Measuring environmental discontinuities rendering of currency crisis Data and methods Sample source and design Results Institutional investor Euromoney internationalistic country risk guide Political risk services Limitations Managerial implications Conclusions Acknowledgements References assumption the tremendous increase in foreign direct investment... If you wish to get a full essay, order it on our website: Orderessay

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