The Impact of Formal Institutional Risks on Firm Performance in Emerging Market Economies
The aim of this study is to empirically reconcile the impact of formal aspects of host countries’ institutional risks on the performance of multinational firms in emerging economies. In addition, this research seeks to provide a comparative study on formal institutions focusing on both aggregate and selected disaggregate core aspects of formal institutions is relied upon to assess their impacts on firm performance in emerging economies. In this study, the measures of qualities of formal institutions are collected from World Bank’s Enterprise Survey (WBES). Through consistence empirical examinations, the research has met its objective in analyzing formal institutional risks as well as it's interaction effect on the performance of firms in emerging market economies.
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