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This study examines the linkage between economic risk and political risk in the United Kingdom. This linkage has attracted the attention of policymakers; however, there is no consequence of the linkage in the existing literature. The study aims to close this gap for the UK case by applying wavelet coherence (WTC) and quantile‐on‐quantile regression (QQR) approaches and using quarterly data between 1984/Q1 and 2020/Q4. The results of the WTC reveal that there is time–frequency dependency between economic risk and political risk majorly in the medium and low frequencies. Moreover, the direction of the causality changes over time. Furthermore, the outcomes of the WTC show that economic risk leads political risk between 1995 and 2005, whereas political risk leads economic risk from 2006 to 2019. The outcomes of the QQR approach disclose that in the higher tail (0.7–0.95) of political risk and lower and medium tail (0.05–0.60) of economic risk, the effect of political risk on economic risk is positive and strong. On the flip side, at all quantiles (0.05–0.95) of economic risk and lower quantiles (0.10–0.30) of political risk, the effect of political risk on economic risk is positive and strong. The results are also validated by the outcomes of partial wavelet coherence, multiple wavelet coherence, and quantile regression. Hence, the results highlight the importance of political risk (economic risk) for economic risk (political risk) in the UK case. [ABSTRACT FROM AUTHOR]

Political risk is the sum of the economic losses that businesses may suffer as a result of the ineffectiveness or influence of public authorities. It is the most important risk that international businesses may face abroad. Since international businesses do not operate in only one country, they may be exposed to varying degrees of political risk through the approaches of various governments. The presence of political risks stands as the biggest obstacle to foreign investments of enterprises. One of the arguments used for the management and minimization of political risks is political risk insurance. Political risk insurance is a type of insurance that businesses take out in order to secure risks such as changes in the political order in the foreign country where trade or investment is made, political instability or crises. Companies and distributors doing contracting works abroad also prefer this insurance. In recent years, political risk insurance has emerged as the most preferred type of insurance in Turkey in order to secure the investments of contractors, trade and industrial organizations abroad in terms of political risk and to prevent damage to export and import agreements. With this insurance, war and political violence, expropriation, breach of contract, transfer restrictions etc. risks can be covered under insurance. The providers of this insurance are not only private insurance companies, but also reinsurers, export credit institutions and insurance providers in international organizations. In this study; The management of political risks in international businesses, the general conditions of the political risk insurance, which is put into practice under the name of Single Risk Insurance against political and commercial risks, the direction of implementation and the latest developments are discussed.

Foreign direct investment (FDI) is a desirable form of capital inflows to emerging and developing countries. Such investments are less susceptible to crises and sudden breakdowns. Therefore, foreign direct investment between the political risks of using annual data for the years 1984-2019 which might influence Turkey has been tested. For this purpose, Fourier-based unit root and cointegration analysis are used. As a result of the Fourier unit root analysis, it is concluded that the FDI variable is difference stationary and the political risk variable is level stationary. For this reason, Yılancı et al. (2020), a fractional-frequency Fourier bootstrap autoregressive distributed lag (ARDL) boundary test was applied to the literature. This test, which is in nonlinear form, captures smooth transitional changes in long-term relationships. As a result of the analysis, it is seen that there is a cointegration relationship between foreign direct investments and political risk and the variables come to equilibrium in the long run. In addition, it is seen that the calculated long-term coefficient is positive and significant and the error mechanism works correctly in the short term. Therefore, as political stability is achieved foreign direct investment inflows will increase and the economies of the country will gain an advantage in reaching high levels of financial development. As a result, it is concluded that the Weak Partisan model is valid in the Turkish economy.

Abstract This study specifically explores the effect of domestic political and economic risks on risk-taking in the banking sector for 105 countries operating in six various geographical regions between 2009 and 2017. To the best of our knowledge, this may be the first study that attempts to conduct this relationship from this perspective. Remarkably, the dynamic estimation results underscore that a rise in political and economic risks triggers risk-taking behavior in the banking sector globally, in particular in the OECD High-income region. Besides, the estimation results reveal that capital regulation, market power, and income diversification negatively impact risk-taking while credit risk, inefficiency, financial market development, and deposit insurance have a positive effect on risk-taking behavior. The results also stress that the extent of the effect of determinants and significance level vary by changing the region. The results are robust and have significant implications for policymakers and bank managers.

Purpose – This study investigates the extent to which, and in what ways and capacities, the incidence of adverse economic conditions burdening the masses, on the macro-level, increases the propensity for the generation of political instability/violence. Design/methodology/approach – Drawing on data from a cross-section of 25 Sub-Saharan African (SSA) countries for the period 2005–2019, fixed effects (FE) and generalized method of moments (GMM) estimations are used to determine the nature and significance of the independent variable (economic condition), complemented by three control variables, on the dependent WGI-defined variable political stability scored on the basis of a continuum from −2.5 (most unstable) to +2.5 (most stable). For the link between political instability and socioeconomic conditions, the study employs a construct derived from frustration-aggression and relative deprivation theory. Findings – The study links socioeconomic adversity to political instability in the context of SSA. In addition, larger populated countries exhibit a greater propensity to political instability than smaller populated countries. In contrast, foreign direct investment (FDI) appears to have no real effect, positive or negative, on political stability. Practical implications – Poor living conditions seem to be strongly associated with a high risk of political violence in SSA. To buoy socioeconomic status, poverty alleviation needs be elevated into a key initiative in the decision-making agenda, at all levels of governance, with real targeted strides achieved in terms of enhancement of the standard of living of the masses. In addition, policies that control population need to be inaugurated hand-in-hand with welfare measures and a more equitable balancing of the distribution of resources in the society. Originality/value – Given the high regional incidence of civil strife and violence, combined with a dearth of research of an empirical nature on political risk in SSA, this study provides a largely ignored and useful context on SSA apart from studies on the incidence of violence that consider the developing countries as a monolithic whole.

Mineral exploration is an industry of uncertainties. Only 0,1% of exploration projects become mines, as the volume, content, and quality of a deposit all must be economically justifiable to find funding in the global financial market. However, the business risk of mineral exploration is not limited to geotechnical and financial risks, as social aspects are now considered the biggest risk facing the industry. Here, we identify three social aspects of business risk that may challenge the industry: political, reputational, and local acceptability. Political risk arises when sectoral authorities and the related legislation come into conflict, such as mineral versus environmental legislation. Reputational risk lies in the relationship between a company's past and current operations in combination with the legitimacy of the entire industry. Local acceptability risk parallels the social license to operate, with poor corporate conduct, competition with other livelihoods, intrusion into culturally sensitive areas, and local values critical of mining all potentially evoking resistance. Companies must be aware not only of the nuances of each social aspect but also of the interplay between them to understand the full scale and scope of the business risks associated with exploration. [ABSTRACT FROM AUTHOR]

Export diversification is a preventive measure against trade shocks, which is defined as an increase in the number of export goods and a decrease in a country's dependence on a single source for exports, and it can help macroeconomic stability. This index is an essential aspect of the development process not only for rentier governments but also for all countries, which can affect income inequality in various ways. Therefore, the study tries to investigate the effect of export diversity on income inequality and the impacts of political risk on the interaction between these two variables, in 81 countries with high and low political risk using the panel quantile model with fixed effects during the years 2000-2019. The results show that export diversity increases income inequality in both groups of countries under investigation. However, export diversification effects on income inequality is greater in countries with high political risk. Therefore, in these countries, the more skilled labor has been used to compensate for the diversification costs and has caused a high wage gap. Industrialization and increasing the degree of trade openness reduce income inequality. Foreign direct investment increases income inequality in both categories of countries. GDP per capita has a non-linear inverse U-shaped effect on income inequality, that Kuznets' hypothesis is confirmed in both categories of countries. [ABSTRACT FROM AUTHOR]

It is only possible to achieve the aims of reversing the impacts of the resource constraint and attaining sustainable growth if there is a rise in tourism organizational efficacy and tourism and a decrease in political instability. This is because these factors can influence the demand for energy by causing changes in the amount of power consumed. These factors may affect energy demand via changes in energy transitions. In light of this, the objective of this study is to investigate the impact that critical measures of institutional efficiency, tourism, and policy instability have on the utilization of renewable energy sources in a dataset consisting of 32 countries that are members of the Organization for Economic Co-operation and Development between the years 1997 and 2019. The article uses descriptive statistics and correlation models (cross-section dependency test and autoregressive distributed lag (ARDL) model) using panel data from 32 Organization for Economic Co-operation and Development (OECD) nations from 1997 to 2019. Insight into the matter aids in our selection of appropriate econometric methods. The following methods are briefly explained. Evidence shows that as a society's average wealth and standard of life grow, so does its utilization of renewable energy sources. In addition, the economic globalization process and the danger it entails are adversely associated with a long-term reliance on renewable energy sources. Policymakers in countries that are members of the OECD should investigate the role that institutional effectiveness and policy instability play in the demand function for renewable energy to ensure a cleaner natural environment over the long term. [ABSTRACT FROM AUTHOR]

This study aims to fill the gap in the literature by specifically investigating the impact of country risk on the credit risk of the banking sectors operating in Brazil, Russia, India, China, and South Africa (BRICS), emerging countries. More specifically, we explore whether the country-specific risks, namely financial, economic, and political risks significantly impact the BRICS banking sectors' non-performing loans and also probe which risk has the most outstanding effect on credit risk. To do so, we perform panel data analysis using the quantile estimation approach covering the period 2004–2020. The empirical results reveal that the country risk significantly leads to increasing the banking sector's credit risk and this effect is prominent in the banking sector of countries with a higher degree of non-performing loans (Q.25 = − 0.105, Q.50 = − 0.131, Q.75 = − 0.153, Q.95 = − 0.175). Furthermore, the results underscore that an emerging country's political, economic, and financial instabilities are strongly associated with increasing the banking sector's credit risk and a rise in political risk in particular has the most positive prominent impact on the banking sector of countries with a higher degree of non-performing loans (Q.25 = − 0.122, Q.50 = − 0.141, Q.75 = − 0.163, Q.95 = − 0.172). Moreover, the results suggest that, in addition to the banking sector-specific determinants, credit risk is significantly impacted by the financial market development, lending interest rate, and global risk. The results are robust and have significant policy suggestions for many policymakers, bank executives, researchers, and analysts. [ABSTRACT FROM AUTHOR]

Most developing countries rely heavily on foreign direct investment (FDI) inflows for economic growth and stability. However, political risk and the foreign exchange rate could direly affect FDI inflows as investors seek stable markets. The most recent example of political risk interactions, the exchange rate and FDI has been the trade war between the United States (US) and China, where the US increased tariffs on Chinese goods worth over $16 billion. A crucial debate is needed regarding the importance of FDI inflows in developing countries, such as South Africa. FDI is observed as a crucial component in providing resources, and it is critical in facilitating globalisation and providing financial assistance to countries in need, especially developing countries such as South Africa. This study aimed to examine the long- and short-run effects of political risk ratings and foreign exchange rate fluctuations on FDI inflows in South Africa. The literature review provided evidence of longand short-term relationships between political risk ratings, the real effective exchange rate, and the GDP's balancing variable on the dependent FDI inflows. The study utilised both the autoregressive distributed lag (ARDL) and non-linear autoregressive distributed lag (NARDL) models to analyse quarterly data from 1995 to 2020. The Variables included in the study were political risk, the real effective exchange rate, FDI inflows and GDP. The study revealed that political risk ratings and the real effective exchange rate have long-run effects on FDI inflows. The real effective exchange rate has an asymmetric long-run effect. It was also found that FDI inflows respond more to real effective exchange depreciations than real effective exchange rate appreciations, implying that the exchange rate is an important economic factor in explaining the investment inflows. Consequently, the study recommends that policymakers deploy responsive policy measures to deal with currency fluctuations and political instability. In South Africa, the negative effect of political risk affects FDI and impacts the overall country risk ratings and the country's ability to borrow. The study also recommends that further research be employed to understand other impacts on FDI inflows and the interaction of political risk and the real effective exchange rate on other critical economic factors. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between FDI, political risk, and institutional quality in 20 sub-Saharan African countries over the period from 2003 to 2019. GMM analysis finds that FDI is attracted to SSA by declining political risk and improved institutional quality but resource extractive SSA economies tend to attract more FDI. The results further show that although FDI investors are more concerned about regulatory and institutional investment protection than with political risk in resource dependent SSA countries, political risk is a more efficient intermediator than institutional quality in attracting FDI to resource dependent SSA countries. [ABSTRACT FROM AUTHOR]

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This study investigates the formation of international joint ventures into emerging markets and the corresponding implications to shareholder wealth. Empirical evidence from this study reveals that formation of international joint ventures into emerging markets are value enhancing for shareholders. The formation of international joint ventures increases firm value by more than 1%, on average. This study also investigates two important factors for their influence on the market's assessment of the joint venture formation—the complexity of the joint venture and the political risk of the host country. Evidence in this study reveals that less complex ventures into emerging markets reap significantly greater shareholder wealth effects relative to more complex ventures. Evidence also reveals that shareholders receive a risk premium for accepting greater political risk. In addition to understanding the ramifications of international joint venture formation, this study has relevance for managers' site selection decisions when considering venture complexity and the political risk of emerging markets. [ABSTRACT FROM AUTHOR]

This is an event based study focused on the stock market anomalies due to substantial events such as monsoon season, the holy month of Ramadan, and leadership style. Data for this research was collected from the Pakistan Stock Exchange from KSE All Shares, KSE-100, KSE-30 KMI-30, and KMI All Shares daily observations. ARCH family models (EGARCH) were applied to encounter volatility (Market Anomaly) in each selected event. Findings revealed that there is no such substantial impact of the holy month of Ramadan and monsoon on the stock market returns (No impact on any indices), however it is interesting to reveal that the market witnessed sizeable improvement & considerable stability in the Dictatorship regime in Pakistan, this is because of controlled market situation, stable macroeconomic environment and favorable investment opportunities due to trust on the government. Going forward, findings unveiled the importance of monitoring the market closely for all of the above-mentioned events and investors may get benefits from findings by making sound investment decisions. The core limitation of the research is that we could not cover more data and more countries which is a future direction for researchers and stakeholders.

This research investigates the effect of political risk on the offshore service industry. The study empirically examines how an extended political risk definition, operationalised into a model consisting of 12 political risk variables, helps predict location decisions across offshoring entry modes and activity types. The research focuses on captive offshoring and offshore outsourcing entry modes, and Information Technology Outsourcing (ITO), Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) activity types. The research indicated that political risk factors accounted for 38% of the variability in offshore outsourcing flows, implying that concerns about service disruptions and/or cost implications of external uncertainties feature as a key factor in supplier selection and location decisions. The findings further confirm a positive relationship between institutional and regulatory factors in host locations, and the flow of offshoring activities with a high knowledge content. The research contributes to enhancing the explanatory ability of Transaction Cost Economics by re-operationalising the concept of political risk in the context of both offshore outsourcing and captive offshoring. For practitioners, these findings provide a clear indication of the political risks that can affect service offshoring decisions; for policymakers, they highlight the importance of strengthening institutional and regulatory factors to attract investment. [ABSTRACT FROM AUTHOR]

The article treats expropriation as the main political risk for international business, which was scientifically conceptualized following the decolonization period and marked by the shift in development strategies of the third world countries. With the end of the third wave of democratization, the fall of the Berlin Wall and the active liberalization of new markets, research interest in political risks, including threats of expropriation of foreign capital, weakened, giving way to mainly economic indicators of the investment climate. In recent years, however, with the increasing geopolitical turbulence and escalating trade and diplomatic conflicts, political factors are being brought into the foreground of country risk profiles.In line with the expert discussions on the return of political risk, this article addresses the issue of the relevance of expropriation threats and reveals their modern nature. It focuses on the development of implicit mechanisms of state dispossessions and their current geographical distribution, which is no longer limited by the emerging markets. Based on the analysis of international arbitration cases, the article proves the modern relevancy and importance of both direct and creeping expropriations. It also stresses the necessity of the adaptation of political risk analysis methodology in accordance with the recent evolution of government takings, marked by the modification of its sources and fundamental political motivations. At the same time, the conducted analysis of scientific research in Russia reveals a noticeable gap in this direction and emphasizes this urgent need for reconsideration of political risk theory in order to bring it in line with current nature of direct and indirect forms of expropriation.

Determining the relationships between economic freedom, political and financial risk, and ecological footprint has important implications for all nations and surrounding countries' environmental sustainability. Nevertheless, the regional influence of these variables has largely been ignored, particularly in countries that are part of China's Belt and Road Initiative (BRI), with only a few studies examining institutions' participation in reducing environmental degradation. This article expands previous research regarding whether the economic freedom and political and financial risks of surrounding countries can also impact domestic ecological footprints. We apply a spatial dynamic econometric model to a panel of 86 BRI countries from 1995 to 2020 to investigate these influences. Our results demonstrate the presence of regional dependency in countries' ecological footprint, also revealing evident spillover effects of indirect political and financial risks and economic freedom.

Introduction: Since the beginning of the economic opening processes in the 1990s, investment flows have increased (FDI) worldwide. However, not all countries are proposed as ideal destinations for recipients of FDI, it must have an attractive economic, political and social landscape. Objetive: This research has the objective of studying the influence that the political risk may have on the decision-making on the subject of FDI by entrepreneurs, in particular, Colombians Methodology: The areas from where it has been analyzed, a series of low criteria is proposed. Is considered. It has been analyzed, a scale of value has been generated for each one, through those that have been studied. Means of stochastic multicriteria acceptability analysis. Results: The feasible weight space results point at the United States as the best destination for Colombian investment, followed by Brazil, the United Kingdom and Chile; while Panama, Spain and Mexico are not favored by any weighting. Conclusions: This work might be helpful in decision-making processes intended to reduce the uncertainty that is proper of the external environment.

Political connections provide substantial benefits to firms. We emphasize the ownership of firms as an important channel through which political connections operate and identify a resulting link between political turnover and turnover in the ownership of firms: Political turnover prompts newly politically connected individuals to take, and newly disconnected individuals to cede, ownership of firms. This pattern should be more pronounced in countries with weaker property rights, among firms with publicly recorded owners, and among firms with more immobile assets. Moreover, firms that experience changes to ownership during periods of political turnover should have elevated political connections and therefore pay less taxes and earn higher profits. Analyses of the ownership structure of firms in 87 countries are consistent with the theory. Because politically connected owners allow firms to compensate for other vulnerabilities, the theory also explains mixed findings in prior work on the consequences of asset immobility. [ABSTRACT FROM AUTHOR]

The study deals with the effect of political stability on environmental degradation in the long run for the United Kingdom (UK). For this aim, the political stability effect on production-based carbon dioxide (CO2) emissions is examined by considering trade openness, renewable energy, and economic growth and using quarterly data between 1995/Q1 and 2018/Q4. Nonlinear autoregressive distributed lag (NARDL), which allows the researcher to measure the asymmetric impact of explanatory indicators positively or negatively, is performed as the empirical approach. Also, Breitung & Candelon (BC) frequency domain causality test is applied to measure the causality effect of explanatory variables on CO2 emissions. The results reveal that (i) political stability has a statistically significant effect on production-based CO2 emissions and positive shocks have a higher power than negative shocks; (ii) economic growth has an increasing effect, whereas renewable energy has a decreasing effect on production-based CO2 emissions; and (iii) there is frequency domain causality from political risk, economic growth, renewable energy consumption, and trade openness to production-based CO2 emissions. Hence, empirical results highlight the asymmetric effect of political stability on environmental degradation in the long run for UK. Thus, UK policymakers should consider political stability in policy development and implementation process for limiting CO2 emissions in the long run. [ABSTRACT FROM AUTHOR]

Today, banks, which act as financial intermediaries, ensure the growth of the economy. Banks, being a channel in monetary policies and monetary issues, are effective institutions in ensuring sustainable macroeconomic stability. In addition, banks are one of the institutions that are exposed to the most financial risk by nature. This article explores the long-term effects of economic, financial and political stabilities on the banking sector. This research covers the 21-year period between 1996–2017. The aim of this study is to examine the effects of economic, financial and political stabilities, which are the components of country risk, on the banking sector in selected Balkan countries and using the panel data analysis technique, which is one of the econometric analysis methods. Panel cross-sectional dependence, unit root tests, cointegration and causality tests were applied according to country risk indicators for the six selected Balkan countries. The selected Balkan countries have paid attention to their development in the country's economies and their involvement in global trade and to adopt the modern banking system. In addition, six Balkan countries have been selected as examples in the study due to their close relations with Turkey in the socio-cultural and economic fields. The results of the panel tests indicated the of unit root tests as well as the existence of cointegration. The p values obtained as a result of cointegration analysis are less than 0.005, indicating the existence of cointegration. It has been concluded that there is a cointegration relationship in all three hypotheses, which have the effects of economic, financial and political stabilities on the banking sector. According to the Granger causality test results, there is a bidirectional causality relationship between the banking variable and the economic stabilities variable. Having long-term and causal relationships between selected Balkan economies requires financial and economic stability to be supported simultaneously. In short, it has been determined that economic, financial and political stabilities have a relationship with sustainable banking in the long term. [ABSTRACT FROM AUTHOR]

China–Pakistan Economic Corridor (CPEC) invests US $ 62 billion in Pakistan's energy, infrastructure, and other development projects to step toward Eurasia's economic integration. However, CPEC may exacerbate climate change vulnerabilities for Pakistan's struggling economy due to potential environmental hazards and consequences. In this context, the current study seeks to examine the impact of political risk on carbon emissions and economic growth in Pakistan while also considering the relevance of trade openness, Chinese outward Foreign Direct Investment (FDI) , and One Belt One Road OBOR policy. To investigate this impact, we use the autoregressive distributed lag technique to cointegration and the fully modified ordinary least squares estimator for robustness results, using data spanning 2000 to 2020 . Our empirical findings reveal that trade openness, FDI, and OBOR policy contribute to pollution and economic growth, but political stability slows the rate of environmental deterioration and increases economic growth. Furthermore, the existence of robust political stability mitigates the negative impacts of FDI and trade openness on the environment, while strong political stability aids the positive effects of FDI and trade openness on economic growth. Also, the findings confirmed that a better political environment promotes economic development while simultaneously lowering carbon emissions. Our results may assist the Government of Pakistan in transforming CPEC into a model green OBOR initiative in the region. [ABSTRACT FROM AUTHOR]

Extant management studies suggest that managers' traits are closely linked to organizational behaviors and performance. Based on these findings, our study analyzed the effect of candidates' facial masculinity on the general election results. This study conducted an empirical test based on the 21st South Korea Congressional Election data, analyzing individual masculinity as measured by the facial width-to-height ratio (fWHR) of 495 candidates. We also used the National Police Agency data to determine how the local crime rate moderates the correlation. Our multilevel models showed that candidates' fWHR had an inverted U-shaped relationship with election results. Candidates who have masculine faces are more advantageous in the election. However, the percentage of votes decreased for candidates with too much an fWHR value. In addition, we found that the local crime rate moderates the relationship between candidates' fWHR and election results. This study extends extant research by highlighting the joint effect of a person's biological traits and political factors and finally provides an interesting managerial implication. [ABSTRACT FROM AUTHOR]

Contemporary society is currently facing major global challenges of a transnational nature whose solutions can only be identified and implemented through collaboration with international organisations and national governments. The main challenge for which an immediate solution is needed is to identify solutions to support sustainable development. Sustainable development can’t be sustained under conditions of political crises, corruption, imminent risks for which nations don’t provide insurance against. This requires collaborative action between governments, international organisations, universities, NGOs and individuals. This paper focuses on one side on the influence of the most prominent obstacle, corruption by analysing its relationship with innovation-based competitiveness, and on the other side on the effects of political risk influencing innovation-based competitiveness. Specifically, the study carried out on corruption and political risk include many social, political and ethical indicators. The topic of debate presented in this study is closely related to the variation of the influence of the indicator of perception of corruption in the public sector on innovation-based competitiveness and the intensity of the relation between political risk and the decline of innovation-based competitiveness. The research of innovation database was collected from the Global Innovation Report 2018-2021, corruption database was collected from the Corruption Perception Index report 2018-2021 and Political Risk database was collected from the Political Risk Report 2018-2021. According to the results it was found that in most of the cases, nations with reduced level of corruption indicator are the most competitive nations in terms of innovation. For example, according to the analyzed period, Western European as well as Northern countries still maintain on the top positions in the analyses of the overall innovation index, corruption perception and political risk perception. This article accentuate the importance of the corruption indicator and political risk for European countries and the generated impact on innovation – based competitiveness. [ABSTRACT FROM AUTHOR]

Strongly affected by the Coronavirus pandemic, by the difficult recovery, with inflation, with discontinuities regarding the supply (supply chain issues), the international economy was more recently upset by the war and its effects, and also an energy crisis; in this context, when hostilities are still in full swing, it is difficult to quantify consequences, repercussions. However, one thing is clear - the country risk landscape is undergoing deep changes, the states neighboring the conflict are not the only ones affected, and global economic actors are facing totally unexpected challenges. Whether it is about Ukraine or Taiwan, or about other regions, one thing is clear - we are living in a conflict era, and the economic effects are deep and complex; the energy crisis has become a reality, and the recession is likely, despite a still high resilience. We therefore propose, in our short study, to highlight some aspects that, we certainly believe, will modify the country risk architecture and the subsequent approach to this concept. [ABSTRACT FROM AUTHOR]

A dynamic environment involves change and innovation. The macroeconomic environment is the „terrain" where all organisations economy compete. In a dynamic market, organisations need to adapt quickly to changes and develop innovative ideas, products and services under the influence of socio-economic factors to keep up with new trends. The business environment brings together economic, social, cultural and political-institutional components. Some factors directly influence organisational performance, while the influence of other factors is only indirect. From an optimistic perspective, these factors can generate opportunities, and from a pessimistic perspective, threats and challenges for the organisation. The aim of this paper is to investigate and define corruption and political risk by identifying influences on competitiveness and performance under the latest global trends in technological development. The main objective of the article is to define and review the current literature on the influence of corruption and political risk on organizational competitiveness and performance. [ABSTRACT FROM AUTHOR]

In this study, we examine the relationship between firm-level political risk and stock price crash risk. Using a broad dataset of 4230 U.S. firms, 38,097 firm-year observations from 2002 to 2019, we reveal a positive association between political risk and stock price crash risk. These findings are robust to several model specifications and endogeneity checks. By using the Brexit referendum as a quasi-natural experiment, we provide evidence of a causal relationship between political risk and crash risk. Through channel analysis, we identify that this relationship is mediated via higher idiosyncratic volatility, lower price informativeness, and higher distress risk. We also find that our results are more pronounced in intangible-intensive firms. Interestingly, we show that managers of these firms respond to political risk by engaging in bad news hoarding. Finally, strong (external or internal) corporate governance mechanisms can moderate the positive relationship between political risk and stock price crash risk. [ABSTRACT FROM AUTHOR]

Despite the growing concern about the economic costs of political risk, relatively little is known about its effect on industrialization. This paper fills the knowledge gap by investigating the impact of political risk on industrialization and relative transmission mechanisms using data from 34 African countries over the 2000–2019 period. Findings from Driscoll and Kraay (1998), system GMM, and quantile regressions show that political risk has a direct negative impact on industrialization. When considering the sub-dimensions of political risk, results show that the increase in government risk, internal and external conflict risk, military politics risk, ethnic tensions risk, investment profile risk, corruption risk, bureaucratic quality risk, and socioeconomic risk adversely affect industrialization. Further, the mediation analysis reveals that political risk does not only have a direct effect on industrialization but also an indirect impact through its adverse effects on financial integration, financial development, and internet penetration. Finally, the net impact is negative and suggests that political risk hinders Africa's industrialization. • Investigate the impact and transmission channels of political risk on industrialization. • Unbalanced panel dataset consists of 34 African countries in Africa. • Political risk has a direct and negative impact on industrialization. • The indirect effect operates through financial integration, financial development, and internet penetration. • Policy recommendations are formulated. [ABSTRACT FROM AUTHOR]

Over the past few decades, large numbers of literatures in behavior finance have examined firm's internationalization motives, with focused on how host country's risk components affect investment inflow. But the effects of home country risk on investment outflow remain unexamined. Therefore, based on the conceptualization of FDI escapism and the combine frameworks of Dunning's eclectic paradigm and internationalization theory, the objectives of this study are twofold: First, to examine and explain the effects of home country composite risks (which encompasses economic risks, financial risks, political risk) on firms' internationalization motive through outward FDI. Second, to determine which components of home country risk "pushes" firms to initiate the FDI escapism phenomenon in global market. Findings reveal that home country composite risk has moderate adverse effect on investment flow abroad, contributed by both the political and financial risk components, which may give rise to escaping FDI. These findings suggest that firm may initiate outward FDI as a partial escape strategy to address the political and financial challenges in their home country. These results are robust to endogeneity issue and have several substantial implications for policy design to reduce country risks in order to achieve firm's specific objective and government policy goals.