Chief Guest Editor

Dr. Fabio Pizzutilo
University of Bari – Dept. of Business and law studies
Email: fabio.pizzutilo@uniba.it

Capital budgeting for foreign direct investments carries complexities that do not affect the corporate decision process for domestic projects: exchange rate fluctuations, political and financial risk of the host country, cost of capital and optimal capital structure in an international setting, differences between project and parent company cash flows, foreign tax regulations, host government controls, etc.. This special issue is of interest in original high quality theoretical and empirical studies that give a relevant contribution to the existing literature on multinational capital budgeting subject by analyzing the relevant variables that affect the capital budgeting for foreign direct investments and by developing models aiming at handling the complexities associated with non domestic business.

About the issue

The topics of this special issue include, but are not limited to:

• Foreign direct investment under uncertainty;
• Choice, timing and localization of foreign direct investments;
• Foreign markets entry mode choices and exit decisions;
• Corporate currency exposure and foreign direct investments ;
• Management of the operating, transaction and translation exchange rate exposure;
• Parent versus project perspective for the valuation of foreign direct investments;
• Political risk (in all its forms) and multinational capital budgeting;
• Valuing political risk for multinational enterprises;
• Greenfield investments versus cross border merger and acquisitions;
• Payment methods for cross border merger and acquisitions;
• International joint ventures;
• Agency costs and foreign direct investments;
• Taxation complexities in the multinational capital budgeting context;
• Real option approaches to multinational capital budgeting;
• Analysis of multinational enterprises strategies through real options ;
• Real options in multinational decision making;
• Valuing the operating flexibility of multinational enterprises;
• International capital asset pricing models;
• Capital structure puzzle for multinational enterprises ;
• Multinational capital budgeting for banks and other financial institutions;
• Multinational capital budgeting for foreign direct investments in emerging countries;
• Multinational capital budgeting for foreign direct investments in developed countries;
• Multinational enterprises corporate risk management;
• Assessing the impact of the recent financial crises on foreign direct investment and on the multinational capital budgeting process