Uncertainty Avoidance and Country Risk Ratings Dissertation

Uncertainty Avoidance and pastoral Risk Ratings - Dissertation ExampleDespite the importance of these country risk ratings, the utility of these measures for predicting market excitability has been called into question (DiGregorio, 2005 Oetzel et al, 2001) while global debt crises have occurred that have been likened to a heart attack for the international financial system (Gokay & Whitman, 2010). Current literature on country risk ratings indicates a focus on political, financial, and frugal brokers without inclusion of social or cultural factors (Miroshnik, 2002). Description of the Population and SampleIn selecting the take size three factors into consideration and the study came up with a sample size which will consist of a total of 49 countries including Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Colombia, Costa Rica, Denmark, Ecuador, El Salvador, Finland, France, Germany, Greece, Guatemala, Hong Kong, India, Indonesia, Iran, Ireland, Israel, Italy, Ja maica, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Pakistan, Panama, Peru, Philippines, Portugal, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Kingdom, United States, Uruguay, and Venezuela. This sample surpasses the minimum required sample size as computed from G*Power, which should reduce the possibility of committing Type II errors when running the analyses. Data from the samples will be collected from the International Country Risk Guide database, Euro gold Country Risk score database, Hofstede Uncertainty Avoidance Index database, and the World Bank databases. Table 4.1 stinting indicators and the previous year country risk ratings. Years compared Predictors 2007 ? 2008 2007 ? 2009 2008 ? 2009 2008 ? 2010 2009 ? 2010 Euromoney .998*** .906*** .908*** Intl Country Risk Guide .982*** .959*** .965*** Economic indicators trade growth .132 .090 -.240 Ratio current account to gross domestic product .878*** .826*** .910*** Growth foreign exchange .039*** .181*** .695*** Inflation .892*** .867*** .950*** GDP per capita .994*** .991*** .994*** Combined indicators .528*** .445** .732*** **p .01, ***p .001, all 2-tailed. Source International Country Risk Guide database To confirm the applicability of factor analysis a t-test was carried out at 95% confidence level. The table above shows all the determine economic factors that could probably affect a countrys risk ratings. The test results are plainly significant if the p-value or the significance value of the test is lower than .05. The t-test statistics (table above) shows that all identified