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

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  • 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.

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  • Ullah, Subhan & Wang, Zheng & Stokes, Peter & Xiao, Wen, 2019. "Risk perceptions and risk management approaches of Chinese overseas investors: An empirical investigation," Research in International Business and Finance, Elsevier, vol. 47(C), pages 470-486.
    • Handle: RePEc:eee:riibaf:v:47:y:2019:i:c:p:470-486
    DOI: 10.1016/j.ribaf.2018.09.008
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