The Implied Volatility of Greek Options and the Political Risk in Eurozone

2015 ◽  
Author(s):  
Dimosthenis Karaflos
Keyword(s):  
Implied Volatility ◽  
Political Risk ◽  
The Political

scholarly journals Bibliometric evaluation of research on political risks in construction projects

2021 ◽  
pp. 191-208 ◽  
Author(s):  
Chunling Wei ◽  
Xiaopeng Deng ◽  
Tengyuan Chang ◽  
Amin Mahmoudi ◽  
Safi Ullah
Keyword(s):  
Content Analysis ◽  
Construction Projects ◽  
Visual Analysis ◽  
Political Risk ◽  
The Political ◽  
Scientometric Analysis ◽  
Research Directions ◽  
International Construction ◽  
Risk Research ◽  
Research Hotspots

The current study aims to provide an overview of the research on political risk using the Web of Science（WoS）database as well as summarize research results and put forward some suggestions for research directions of political risk in international construction projects. It is the first time scientometric analysis of political risk research is executed. In this regard, the papers related to political risk in the WoS database have been retrieved and the literature is sorted out by visual and content analysis methods. Visual analysis is used to analyze the research overview, knowledge base, and research hotspots of this field. The content analysis method is adopted to expound the current research focus from three perspectives inducing the influence of political risk, risk assessment, and risk management measures. The results show that in the political risk context, the number of publications has experienced an increasing trend in recent years. Based on the existing literature on political risk for all companies, this overview provides some suggestions to address the political risk in international construction projects in the future. The results contribute to the scholars understanding of the research overview, research hotspots, and future research directions of political risk research in construction projects.

scholarly journals Features of Political Risk Management of Transnational Corporations in the Context of Economic Globalization

2021 ◽  
pp. 162-168
Author(s):  
Ye. Bolotina ◽  
◽  
O. Shubna ◽  
A. Borodai ◽  
N. Steshenko ◽  
...  
Keyword(s):  
Risk Management ◽  
Political Risk ◽  
Transnational Corporations ◽  
Mitigation Measures ◽  
The Political ◽  
Negative Consequences ◽  
Investment Activity ◽  
Political Risks ◽  
Degree Of Risk ◽  
Foreign Trade Turnover

The article considers the specifics of the functioning of TNCs, their current activities in the investment market. TNCs are currently one of the most important actors in international economic relations. The investment activity of transnational corporations has a direct impact on the balance of payments, production volumes, foreign trade turnover, employment, and the competitiveness of the host economy. The key features of political risk management of TNCs are identified and characterized. The political risks of TNCs are related to their interpretation, classification and methods. The means of reducing the degree of risk include: risk avoidance, retention, risk transfer. Ways to reduce the degree of risk include: diversification, acquisition of additional information, limitation, insurance, hedging. It has been proven that the main advantage of risk communications as an effective ancillary way to manage the political risks of TNCs at the state level, especially in the early stages of public policy making, is that it allows decision makers to better and timely inform stakeholders about risks. and to effectively exchange data between different parts of the public administration system, including effective mitigation measures. The main directions for TNC investment in 2018 are analyzed. The negative consequences of TNCs and ways to overcome them are identified.

Political Risk, Reputation, and the Resource Curse

2011 ◽  
Vol 44 (6) ◽  
pp. 662-688 ◽  
Author(s):  
Nathan M. Jensen ◽  
Noel P. Johnston
Keyword(s):  
Natural Resource ◽  
Insurance Industry ◽  
Resource Curse ◽  
Political Risk ◽  
Positive Association ◽  
The Political ◽  
Data Set ◽  
Resource Wealth ◽  
Risk Insurance ◽  
Natural Resource Wealth

There is a growing literature on how natural resources affect both economic performance and political regimes. In this article the authors add to this literature by focusing on how natural resource wealth affects the incentives of governments to uphold contracts with foreign investors across all sectors. They argue that although all states suffer reputation costs from reneging on contracts, governments in natural-resource-dependent economies are less sensitive to these costs, leading to a greater probability of expropriation and contract disputes. Specifically, leaders weigh the benefits of reneging on contracts with investors against the reputation costs of openly violating agreements with firms. The authors’ theoretical model predicts a positive association between resource wealth and expropriation. Using a data set from the political risk insurance industry, the authors show that resource dependent economies have much higher levels of political risk.

Risk under "One Country and Two Systems": Evidence from Class A, B and H Shares of Chinese Listed Companies

2003 ◽  
Vol 06 (02) ◽  
pp. 179-197 ◽  
Author(s):  
Yimin Zhang ◽  
Ronald Zhao
Keyword(s):  
Hong Kong ◽  
Risk Premium ◽  
Political Risk ◽  
Listed Companies ◽  
Interest Rate Risk ◽  
The Political ◽  
Class A ◽  
Rate Risk ◽  
Chinese Listed Companies ◽  
Two Systems

Chinese listed companies issue Class A, B and H shares to Chinese, foreign and Hong Kong investors, respectively. Entitled to exactly the same rights and obligations, the three classes of shares are, however, traded at significantly different prices. The valuation differential is attributable to the different responses to the country-specific risk related to the emerging Chinese stock market by the three categories of investors. The country risk of China can be decomposed into political risk, exchange rate risk, interest rate risk and market risk. Empirical tests provide strong evidence to support the decomposition model. Compared with Chinese investors of A-shares, foreign investors would require a higher rate of return for B-shares to adjust for the political risk of China, reflecting a differential in the risk premium required on the world capital market. In comparison, the Hong Kong investors, who have greater tolerance of the political risk involved in H-shares as a result of the increasing integration between the Hong Kong and Chinese markets under "one country and two systems", are willing to pay a higher price for H-shares relative to B-shares.

scholarly journals Assessment of the Political Risk in a Country: a Practitioner’s View

2019 ◽  
Vol 20 (3) ◽  
pp. 407-427
Author(s):  
Carlos Gustavo Arrieta Padilla
Keyword(s):  
Risk Assessment ◽  
South America ◽  
Foreign Investment ◽  
Political Risk ◽  
General Motors ◽  
The Political ◽  
Negative Effects ◽  
Union Carbide ◽  
Legal Entities ◽  
Multilateral Treaties

Political risk is inherent to foreign investment. It stems from either the government's or the political regime's instability, or restrictive and compelling governmental policies. To cope with this risk, two complementary instruments are used: risk assessment and deterrent measures. Taking into consideration South America, the author explains how the political risk assessment is realized through risks indexes, public or corporate: each carries its own criteria as shown here by the analysis of General Motors and Union Carbide methods of assessment. The author then discusses the means available to the investor to forecast and minimize the negative effects of the actualization of a political risk. He identifies two main categories of deterrent measures: business oriented strategies carried out by the investor or legal techniques of protection. Among the latter, the author analyses the stabilization and internationalization clauses; the security offered by certain bilateral or multilateral treaties to foreign investment; the guarantees agreed upon by organizations such as the Multilateral Investment Guarantee Agency; the transfer of domicile of legal entities.

scholarly journals Learning from Failure: China's Overseas Oil Investments

2013 ◽  
Vol 42 (1) ◽  
pp. 131-165 ◽  
Author(s):  
Susana Moreira
Keyword(s):  
Risk Management ◽  
Raw Materials ◽  
Political Risk ◽  
Oil Industry ◽  
The Political ◽  
Oil Companies ◽  
National Oil Companies ◽  
Learning From Failure ◽  
Recent Developments ◽  
Poor Management

Thirsty for oil and other raw materials needed to fuel its breakneck development, China is funnelling money and manpower into an expanding number of countries in order to secure access to natural resources. This effort has successfully increased Chinese oil assets overseas but it has also exposed Beijing and Chinese national oil companies (NOCs) to significant risks. The present paper focuses on one type of risk – political risk – and how it has affected China's global quest for oil since 1993. It starts with a brief overview of political risk. It then looks at political risk management as applied to the oil industry in general. The paper continues with a discussion of the political risk management of Chinese national oil companies over time. This includes a concise examination of several instances in which the interests of Chinese NOCs have been undermined due to poor management of political risk. Recent developments suggest that Chinese NOCs are learning from these mistakes and adjusting their strategies accordingly. Still China's own socio-political context continues to hamper the ability of Chinese NOCs to deal with on-the-ground realities that are clearly much more unstable than their own.

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