Legitimacy Spillovers and Political Risk: The Case of FDI in the East African Community

Research Summary In order to successfully invest abroad, firms must consider how their actions will affect their acceptance by host country stakeholders such as the government and host society. When perceived as more legitimate, firms will likely experience less political risk; greater illegitimacy will likely result in more political risk. Importantly, such stakeholders often form similar opinions about firms from the same home...