Dr Tim King Publishes Paper in the Journal of Corporate Finance

Dr Tim King, Director of the Centre for Quantitative Finance (CEQUFIN) at Kent Business School, has co-authored a research paper published in the Journal of Corporate Finance.

The paper, entitled Investment, Leverage and Political Risk: Evidence from project-level FDI’, questions the role capital structure can play in shaping foreign direct investment (FDI) decisions in the presence of political risk.

To produce the research, Dr King used a dataset that matches 10,000 unique outward foreign direct investment (OFDI) projects with 1135 distinct U.S. firms over a nine- year period, highlighting trends in international investment decisions.

His findings demonstrate that businesses with low growth opportunities and higher political risk are less likely to commit financial resources to FDI projects, providing perspective and understanding on the international investment decisions made by firms, particularly those in countries facing political uncertainty.

The piece adds to the growing portfolio of impactful and topical research being conducted by members of The Centre for Quantitative Finance.

The findings have been published in The Journal of Corporate Finance in a paper as given below:

Timothy King, Tiago Loncan and Zaheer Khan (2021)

You can read the full paper here.

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