All Academic, Inc. Research Logo

Info/CitationFAQResearchAll Academic Inc.
Document

Gambling on Conflict: Profiling Investments in Conflict Countries
Unformatted Document Text:  Andreea Mihalache Updated: March 20, 2008 assumption—that firms are homogenous insofar as they all face prohibitively high costs from political violence, leading to a blanket deterrent effect of violence on investors— allows for the development of a model that solves this puzzle. Furthermore, data on firm attitudes towards risk suggests that relaxing this assumption is reasonable. Different firms have different attitudes towards the same type of risk. I use a survey of executives and risk management officers in corporations with investments in emerging markets to assess variations in firms’ perceptions of risk. In October 2006, the Economist Intelligence Unit, sponsored by ACE, IBM, and KPMG, surveyed 177 executives about “their attitudes towards operating risk management in the context of emerging market investments” (EIU 2006, 1). This survey asks investors directly about the threat they perceive from political violence (as well as other political sources), about their preparedness in dealing with threats from political violence, about the nature, quality, and costs of the tools their organization uses to alleviate political risks, and about the level of importance their organization assigns to the management of political risk. The data set also contains some descriptive information for each respondent’s organization (e.g., industry, global annual revenue). This data set is valuable because respondents represent a wide range of industries and regions, “with roughly one-third each from Asia and Australasia, North America, and Western Europe” (EIU 2006, 1). Furthermore, about half of the respondents represent businesses with annual revenue of more than $500 million. Finally, 91% of the respondents have influence or responsibility in strategic risk management decisions in their organizations. 8

Authors: Mihalache, Andreea.
first   previous   Page 8 of 62   next   last



background image
Andreea Mihalache
Updated: March 20, 2008
assumption—that firms are homogenous insofar as they all face prohibitively high costs
from political violence, leading to a blanket deterrent effect of violence on investors—
allows for the development of a model that solves this puzzle. Furthermore, data on firm
attitudes towards risk suggests that relaxing this assumption is reasonable. Different
firms have different attitudes towards the same type of risk.
I use a survey of executives and risk management officers in corporations with
investments in emerging markets to assess variations in firms’ perceptions of risk. In
October 2006, the Economist Intelligence Unit, sponsored by ACE, IBM, and KPMG,
surveyed 177 executives about “their attitudes towards operating risk management in the
context of emerging market investments” (EIU 2006, 1). This survey asks investors
directly about the threat they perceive from political violence (as well as other political
sources), about their preparedness in dealing with threats from political violence, about
the nature, quality, and costs of the tools their organization uses to alleviate political
risks, and about the level of importance their organization assigns to the management of
political risk. The data set also contains some descriptive information for each
respondent’s organization (e.g., industry, global annual revenue).
This data set is valuable because respondents represent a wide range of industries
and regions, “with roughly one-third each from Asia and Australasia, North America, and
Western Europe” (EIU 2006, 1). Furthermore, about half of the respondents represent
businesses with annual revenue of more than $500 million. Finally, 91% of the
respondents have influence or responsibility in strategic risk management decisions in
their organizations.
8


Convention
All Academic Convention is the premier solution for your association's abstract management solutions needs.
Submission - Custom fields, multiple submission types, tracks, audio visual, multiple upload formats, automatic conversion to pdf.
Review - Peer Review, Bulk reviewer assignment, bulk emails, ranking, z-score statistics, and multiple worksheets!
Reports - Many standard and custom reports generated while you wait. Print programs with participant indexes, event grids, and more!
Scheduling - Flexible and convenient grid scheduling within rooms and buildings. Conflict checking and advanced filtering.
Communication - Bulk email tools to help your administrators send reminders and responses. Use form letters, a message center, and much more!
Management - Search tools, duplicate people management, editing tools, submission transfers, many tools to manage a variety of conference management headaches!
Click here for more information.

first   previous   Page 8 of 62   next   last

©2012 All Academic, Inc.