Author(s)

Qigang Yuan, Yongsheng Ji

Corresponding Author

Qigang Yuan

Abstract

The National Risk Analysis Report of 2017 pointed out that the most important risk faced by enterprises in the implementation of OFDI is still political risk. Political security risks and government stability risks are complex, and the government's work efficiency and corruption level in the host country is most influential to investment in foreign country. Political risk has brought a lot of uncertainty to the company's overseas investment. In the new era, Chinese enterprises have faced structural changes in political risks. This paper summarizes the political risk research faced by Chinese enterprises OFDI from the following three aspects. Firstly, it summarizes the structural changes that enterprises face the political risks. Secondly, it compares the measurement and evaluation methods. Thirdly, how does political risk affect enterprises OFDI, and re-analyzed the conclusion that the enterprise OFDI has risk preference characteristics from the existing research; Finally, pointed out the direction of future research.

Keywords

Political risk, Structural change, Enterprise OFDI, Risk preference theory.