Research Talk: Jonas Puck, WU Vienna, "The Relationship Between Electoral Uncertainty and Cross-Border Investment Decisions"
January 30, 2018
Jonas Puck gives a research talk on his paper: "The Relationship Between Electoral Uncertainty and Cross-Border Investment Decisions"
Traditionally, international business (IB) research has often associated political risk with country governance quality (Slangen, van Tulder 2009), corruption and freedom (Jiménez 2010), expropriation (Hajzler 2012), overall country risk ratings (López-Duarte, Vidal-Suárez 2010; Osabutey, Okoro 2015; Buckley et al. 2007; Quer et al. 2012) and political constraints (Laufs et al. 2016; Delios, Henisz 2003; Henisz, Delios 2001). These definitions have in common an exclusive focus on a country’s static and historical institutional framework, while largely ignoring dynamic events. However, certain dynamic events, namely elections, lead to a redistribution of political power within a country, which, in turn, can lead to changes in institutional conditions (Mei, Guo 2004; Gulen, Ion 2015). Hence, IB research is at risk of an incomplete and possibly biased understanding of political risk when ignoring elections. With this paper, we aim to extend current knowledge by investigating the relationship between risk related to elections and firms’ crossborder investment decisions.