BazEkon - The Main Library of the Cracow University of Economics

BazEkon home page

Main menu

Author
Pęksyk Marcin (Academy of International Economic and Political Relations), Aven Eyvind (Statoil), Klausen Liv Marit (Statoil)
Title
Accounting for Country Risk in Foreign Direct Investment Appraisal - Comparable Analysis Based on Statoil Case
Uwzględnianie ryzyka kraju w analizie opłacalności projektów zagranicznych inwestycji bezpośrednich - analiza porównawcza w oparciu o portfel inwestycyjny firmy Statoil
Source
Zeszyty Naukowe Uniwersytetu Szczecińskiego. Finanse, Rynki Finansowe, Ubezpieczenia, 2011, nr 38, s. 727-742, rys., tab., bibliogr. 35 poz.
Keyword
Zarządzanie ryzykiem, Inwestycje zagraniczne, Analiza inwestycyjna, Portfel inwestycyjny, Metody dyskontowe, Metody dyskontowe oceny inwestycji
Risk management, Foreign investment, Investment analysis, Investment portfolio, Discount method, Investment evaluation discount methods
Note
streszcz., summ..
Company
Statoil
Abstract
Artykuł koncentruje się na zagadnieniu ekwiwalentności metod oceny projektów bezpośrednich inwestycji zagranicznych z uwzględnieniem ryzyka kraju. Metodzie skorygowanej stopy dyskontowej (RADR) przeciwstawiono wyniki otrzymane przy zastosowaniu scenariuszy ważonych ryzykiem. W badaniu posłużono się projektami inwestycyjnymi norweskiej firmy Statoil. Do weryfikacji hipotez badawczych użyto nieparametrycznych testów statystycznych. (abstrakt oryginalny)

One of the practical problems faced by managers when choosing between alternatives (including whether or not to invest in a particular foreign project), is how to deal with the uncertainty of the outcome(s). Research examined the hypothesis that the risk adjusted discount rate (RADR) method, containing Country Risk premium, can be applied as an equivalent of probability weighted scenarios (PWS) approach in a process of accounting for Country Risk in the expected Net Present Value (NPV) calculation for Foreign Direct Investment (FDI). The experiment was run on a sample taken from the FDI portfolio of Statoil, a Norwegian oil and gas company, which consists of 24 investment cases performed in six countries. The results of this experiment support the hypothesis that, for the tested population, the RADR method is not an equivalent of the PWS approach and that both cannot be used interchangeably to account for Country Risk in the process of FDI appraisal. (original abstract)
Accessibility
The Main Library of the Cracow University of Economics
The Library of Warsaw School of Economics
The Library of University of Economics in Katowice
The Main Library of Poznań University of Economics and Business
The Main Library of the Wroclaw University of Economics
Szczecin University Main Library
Full text
Show
Bibliography
Show
  1. Adler R.W.: Strategic Investment Decision AppraisalTechniques: The Old and the new, "Business Horizons" 2000, 43(6).
  2. Aven E., Flørenæs S.: Country Risk: Quantitative Measurement and Analysis, "Risk Review" 2004, May/June.
  3. Bierman H.J., Smidt S.: The capital Budgeting Decision. Economic Analysis of Investment Projects, Macmillan Publishing Co., Inc., 1980.
  4. Chen V.C.P., Tsui K-L., Barton R.R., Allen J.K.: A Review of Design and Modeling in Computer Experiments, [in:] Handbook of Statistics, ed. R. Khattree, C.R. Rao, Vol. 22, Elsevier Science B.V., 2002.
  5. Doherty M.: Probability versus Non-Probability Sampling in Surveys, "The New Zealand Statistics Review" 1994, March.
  6. Donaldson G.: Strategic hurdle rates for capital investment, "Harvard Business Review" 1972, 50(2).
  7. Easterby-Smith M., Thorpe R., Lowe A.: Management Research: An Introduction, (2nd ed.), Sage, London 2002.
  8. Ellsworth R.R.: Subordinate financial policy to corporate strategy, "Harvard Business Review" 1983, 61(6).
  9. Erb C., Harvey C., Viskanta T.: Expected Returns and Volatility in 135 Countries, "The Journal of Portfolio Management" 1996, Spring.
  10. Fang K., Li R., Sudjianto A.: Design and Modelling for Computer Experiments, Chapman & Hall/ CRC, London 2006.
  11. Friedman D., Cassar A.: Economics Lab: An Intensive Course in Experimental Economics, Routledge, London-New York 2004.
  12. Goedhart M., Haden P.: Emerging Markets aren't as risky as you think, "The McKinsey Quarterly" 2003, 3.
  13. Grobler A.: Metodologia nauk, Wydawnictwo AUREUS & Wydawnictwo ZNAK, Kraków 2006.
  14. Harvey C.R.: The International Cost of Capital and Risk Calculator (ICCRC), 2001, http://faculty. fuqua.duke.edu/~charvey/Research/Working_Papers/W35_The_international_cost.pdf .
  15. Herbst A.F.: Capital asset investment: Strategy, Tactics and Tools. Wiley-Finance, John Wiley & Sons, Ltd., Chichester 2002.
  16. Hirshleifer J.: Risk, the Discount Rate, and Investment Decisions, "American Economic Review" 1961, 51(2).
  17. Johnson R.D., Siskin B.R.: Quantitative Techniques for Business Decisions, Prentice-Hall, Inc., 1976.
  18. Korzyński M.: Metodyka eksperymentu - planowanie, realizacja i statystyczne opracowanie wyników eksperymentów technologicznych, Wydawnictwa Naukowo Techniczne, Warszawa 2006.
  19. Marczyk G., DeMatteo D., Festinger D.: Essentials of research design and methodology, John Wiley & Sons, Inc., Hoboken, New Jersey 2005.
  20. Mills R., Peksyk M., Weinstein W.: Sharpening the Tools of Country Risk Analysis, "The ICFAI Journal of Financial Risk Management" 2006, December.
  21. Myers M.D., Gordon L.A., Hamer M.M.: Postauditing Capital Assets and Firm Performance: An Empirical Investigation, "Managerial and Decision Economics" 1991, 12(4).
  22. Pabis S.: Metodologia i metody nauk empirycznych, Państwowe Wydawnictwo Naukowe, Warszawa 1985.
  23. Peksyk M.: On The Methods of Accounting for Country Risk in Foreign Direct investment Appraisal, a thesis submitted for the degree of Doctor of Philosophy at Brunel University/Henley Management College, January 2008.
  24. Pike R. Neale B.: Corporate finance and investment: decisions and strategies, FT Prentice Hall, Harlow 2003.
  25. Remenyi D., Williams B., Money A., Swartz E.: Doing Research in Business and Management: An Introduction to Process and Method, SAGE Publications, London 2002.
  26. Rodger C., Petch J.: Uncertainty and Risk Analysis, Business Dynamics, PricewaterhouseCoopers, London 1999.
  27. Ruback R.: Enterprise Valuation Roundtable, "Journal of Applied Corporate Finance" 2007, 19 (Spring).
  28. Santner T.J., Williams B.J., Notz W.I.: The Design and Analysis of Computer Experiments, Springer, Berlin 2003.
  29. Seitz N., Ellison M.: Capital Budgeting and Long Term Financing Decisions, Thomson South-Western, UK 2005.
  30. Sprent P., Smeeton N.C.: Applied Nonparametric Statistical Methods (3rd ed.), Chapman & Hall/ CRC, London 2001.
  31. Szreder M.: Metody i techniki sondażowych badań opinii, Polskie Wydawnictwo Ekonomiczne, Warszawa 2004.
  32. Wilcoxon F.: Individual comparisons by ranking methods, "Biometrics" 1945, 1.
  33. Wilcoxon F.: Some rapid approximate statistical procedures, Stamford Research Laboratories, American Cyanamid Corporation, Stamford 1949.
  34. Wilson J.: Thinking with Concepts. Cambridge, University Press, 1969.
  35. Zener M., Akaydin E.: A practical Approach to the International Valuation &Capital Allocation Puzzle. Salomon Smith Barney, Global Corporate Finance, 2002, July.
Cited by
Show
ISSN
1640-6818
1733-2842
Language
eng
Share on Facebook Share on Twitter Share on Google+ Share on Pinterest Share on LinkedIn Wyślij znajomemu