Benesova, Hana (2013) The Empirical Determinants of the Adoption of a Political Risk Assessment Function in International Firms. In: 40th AIB-UKI (UK & Ireland Chapter) Conference, 21 - 23 March 2013, Aston University. (Unpublished)

This paper seeks to conceptualise a new approach to the identification of the factors influencing the adoption of a political risk assessment (PRA) function. The research population will comprise a convenience sample of Czech and Slovak international firms. The information whether or not a firm has set up a PRA function will be obtained via a questionnaire survey. By making use of firm value maximization and risk aversion and considering the rationale for risk management activities: (i) reducing the expected costs of financial distress; (ii) reducing the risk premiums payable to various partners; (iii) increasing investment possibilities; and (iv) reducing expected tax payments, we develop a number of determinants to be employed in PRA studies; and we propose a model for predicting the PRA adoption decision.

Paper 5_AIB - UKI 2013 Submission.pdf - Accepted Version

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