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A fuzzy approach for the estimation of foreign investment risk based on values of rating indices

Author

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  • Simona Hašková

    (Institute of Technology and Business in České Budějovice)

  • Petr Fiala

    (University of Economics, Prague)

Abstract

The paper discusses the uncertainty resulting from vagueness. Within this topic we present an original version of the fuzzy approach to a foreign investment risk estimation based on values of rating indices. The transition from the basic point values of rating indices into the linguistic values within intervals of linguistic variables of fuzzy logic enables us to take into account the diverse kinds of uncertainty. The theoretical and methodological part submits fundamentals of the general fuzzy model of the vaguely defined problem, which is applied to the problem of the foreign investment “risk” estimation of selected countries of Europe and Asia. The inclusion of a country into one of the categories (“high risk countries”, “conditional risk countries” and “non-risk countries”) is based on a vector of value indexes of the sub-components of business environment quality (corrupt environment, economic stability and political stability).

Suggested Citation

  • Simona Hašková & Petr Fiala, 2019. "A fuzzy approach for the estimation of foreign investment risk based on values of rating indices," Risk Management, Palgrave Macmillan, vol. 21(3), pages 183-199, September.
    • Handle: RePEc:pal:risman:v:21:y:2019:i:3:d:10.1057_s41283-019-00051-1
    DOI: 10.1057/s41283-019-00051-1
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    References listed on IDEAS

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    Cited by:

    1. Simona Hašková & Petr Šuleř & Róbert Kuchár, 2023. "A Fuzzy Multi-Criteria Evaluation System for Share Price Prediction: A Tesla Case Study," Mathematics, MDPI, vol. 11(13), pages 1-17, July.
    2. Simona Hašková & Marek Vochozka & Jiří Kučera, 2023. "A fuzzy evaluation model of manufacturing machinery in terms of sustainable business," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(4), pages 71-88, June.

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