“…Among the risks, political risk plays a key role with regards to decisions on international expansion, foreign investment, the market value of multinationals, and ownership of multinational firms in host countries (Kesternich & Schnitzer, 2010;Zavadskas, Turskis, & Tamošaitiene, 2010;Kyaw, Manley, & Shetty, 2011;Méon & Sekkat, 2012;Jiménez, Ongena, Peydró, & Saurina, 2014b). Political risk are political events in a country that impact the business climate in such a way as to rupture reasonably expected returns, namely: political changes that influence future cash flows (Howell, 2011;Bekaert, Harvey, Lundblad, & Siegel, 2016). The problem of political risks is particularly acute in developing countries (Bekaert et al, 2016;Fernando et al, 2017;Hosseini et al, 2018;Ramamurti & Doh, 2004).…”