Risk perceptions and risk management approaches of Chinese overseas investors: An empirical investigation

Ullah, Subhan; Wang, Zheng; Stokes, Peter; Xiao, Wen

Abstract

This paper presents empirical evidence on how Chinese firms perceive and tackle risks associated with their overseas investments. Using a first-hand survey dataset of Chinese firms who invest abroad, we depict variations in (1) the levels of different types of perceived risk, and (2) the risk management approaches taken by these firms. These variations are assessed with respect to three prominent factors: firm ownership structure, investment motives, and the host country institutional quality. Our evidence uncovers a significant degree and pattern of heterogeneity in the strategic behaviour of Chinese investors in risky environments.

Citation

Ullah, S., Wang, Z., Stokes, P., & Xiao, W. (2019). Risk perceptions and risk management approaches of Chinese overseas investors: An empirical investigation. Research in international business and finance, 47, 470-486. https://doi.org/10.1016/j.ribaf.2018.09.008

• Journal Article Type: Article
• Acceptance Date: Sep 18, 2018
• Online Publication Date: Sep 24, 2018
• Publication Date: 2019-01
• Deposit Date: Sep 23, 2018
• Publicly Available Date: Mar 25, 2020
• Print ISSN: 0275-5319
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 47
• Pages: 470-486
• DOI: https://doi.org/10.1016/j.ribaf.2018.09.008
• Keywords: Chinese overseas investment; Risk management; Ownership structure; Investment motives; Institutional quality
• Public URL: https://hull-repository.worktribe.com/output/1067097
• Publisher URL: https://www.journals.elsevier.com/research-in-international-business-and-finance
• Contract Date: Sep 24, 2018