THE IMPACT OF POLITICAL RISK ON THE FOREIGN DIRECT INVESTMENT DECISION: A CAPITAL BUDGETING ANALYSIS
作者： DOROTHEE J. FEILS , FLORIN M. ŞABAC
DOI: 10.1080/00137910008967541
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摘要: ABSTRACT Using a capital budgeting framework, we examine the impact of political risk on foreign direct investment decision. Political may alter operating cash flows via discriminatory regulations as well expropriation. We model costs and expropriation NPV project under assumption that parameters affect are constant over life project. Next, provide an illustration for case in which relevant variable The paper concludes with example 1990s, Black Sea Energy Ltd.'s Russia.
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