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Can I read Systemic Political Risk on EtoBox?
Systemic Political Risk by Helena Chuliá; Marc Estévez; Jorge M. Uribe is a Economics, Econometrics and Finance article available to read on EtoBox.
What is Systemic Political Risk about?
Political risk impacts firm-level risk, influencing funding costs, cash holdings, and capital structure choices. Traditional approaches to political risk rely on aggregate indicators, like economic policy uncertainty proxies. In contrast, our study examines how political risk spreads among individual US firms and sectors using network analysis and systemic risk indicators. This approach identifies crucial and vulnerable actors, not possible with aggregate proxies. We demonstrate the spread of political risk among firms and establish the utility of monitoring neighboring firms to predict potential political risk for a specific firm. Thus, firm-level political risk is not just an idiosyncratic concern but also a systemic one. Additionally, we find that the most central political risk actors are the most sensitive to economic cycles.
Who reads Systemic Political Risk?
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Helena Chuliá; Marc Estévez; Jorge M. Uribe
- Publisher
- Elsevier BV
- Published
- 2023
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)