Aqui no se habla Agencia. An examination of the impact of adverse selection and framing in decision-making: A US/Mexico comparison

Authors

Stephen B. Salter, University of Texas at El Paso
Philip A. Lewis, Eastern Michigan UniversityFollow
Luis Felipe Juarez Valdes, Universidad de Las Americas-Puebla

Document Type

Article

Publication Date

2004

Department

Accounting and Finance

Abstract

The Foreign Investment Risk Matrix (FIRM) developed by Bhalla (1983) uses political and economic risk measures for foreign direct investment decision making. FIRM may be used to develop a matrix that categorizes countries based on political risk and economic risk as acceptable, unacceptable, or uncertain for investment. We demonstrate using political and economic risk variables that are available on the internet in an expanded model using three measures of political risk and three measures of economic risk. After determining the group of countries that would be acceptable for FDI, the multinational companies can focus on further analysis of acceptable countries.

DOI

10.1111/j.1467-646X.2004.00103.x

Citation

Salter, S. B., Lewis, P. A., & Valdes, L. F. J. (2004). Aqui no se habla Agencia. An examination of the impact of adverse selection and framing in decision-making: A US/Mexico comparison. Journal of International Financial Management & Accounting, 15(2), 93–117.