“…Khanna and Palepu's (1997) study carved dimensions of the institutional environment as capital market, labor market, product market, government regulation, and contract enforcement. Grigorian and Martinez (2001) built measures of institutional quality and contract enforcement, and utilized five indicators of political risk: government repudiation of contracts, risk of expropriation, corruption, bureaucratic quality, and rule of law. Newman (2000) focuses on the political, legal, and regulatory dimensions.…”