i took in international business course last fall management thirty forty
and there were two subjects f on extremely interesting first was project finance in the
second was political business cycle theory my research kind of questions something from that was
how do developing democratic collections affect project finance capital structure
first off i review a lot of the literature surrounding project finance what it is
how it's been studied throughout history that i looked at vertical business cycle theory to
really understand that the two threes that underlie which is opportunistic and part of simple
is a political businesslike theory
someone about looking at the two political "'cause" the psycho theories and use that and
a series of macroeconomic institutional and project specific controls to really assess the impact of
elections on the capital structure my research supervisor is actually my professed if not enough
some of this class paul weller
and he is done extensive research on the subject of both project finance employed a
cup as a cycle theory
but really never together and he was there to guide me through how to how
to create this study the actually measured but we we're trying to seek hypothesis was
elections in general increase investment risk in therefore increased amount of equity that has to
be provided by multinational corporations and found this to be statistically significant where
about a foreigner have percent increase in fact what he was necessary for products during
election years and this is big because that can change the timing of the size
the project that they want undertaken these developing democracies they're really trying to garner for
direct investment
and then on the other side with part of sandwiches looking at how political parties
of the incumbent presidential candidate it played a role
i did not find
significant support for my hypotheses by did find some interesting aspects where it seems the
left wing
incumbents side increase investment risk as opposed to with the right wing
but it will
really be interesting to see future research done on partisanship
there's not really