Conducting Business in Eastern Europe : risk-return perpectives of senior financial executives
By: WELCH, Jonathan; CINER, Cetin
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ArticlePublisher: Oxford : Elsevier, April 2004European Management Journal 22, 2, p. 224-230Abstract: Ten years ago we published an article that documented the views of chief financial officers about doing business in Eastern Europe. Since then there has been progress toward economic stabilization and the developmentof market economies in the region. These changes and other significant events in the least decade have affected the conduct of business in Estern Europe. In this present paper, we update the finding of our earlier study and add new perspectives. A mail survey targeting senior US financial executives and follow up interviews were utilized. It appears the risk-return tradeoff for US firms of investment in Eastern Europe has changed. The classic tradeoff now seems to exist in product and service markets: for a variety of reasons risk is perceived to be lower than a decade ago, but so are returns. However, the same does not appear to hold true financial markets in Eastern Europe where financial executivesstill perceive market inefficiencies and ineffectiveness. EU accession and adoption of the Euro by Eastern European countries are viewed wery positively bu US financial executives, and these events may serve to improve the funcitoning of financial markets there as well
Ten years ago we published an article that documented the views of chief financial officers about doing business in Eastern Europe. Since then there has been progress toward economic stabilization and the developmentof market economies in the region. These changes and other significant events in the least decade have affected the conduct of business in Estern Europe. In this present paper, we update the finding of our earlier study and add new perspectives. A mail survey targeting senior US financial executives and follow up interviews were utilized. It appears the risk-return tradeoff for US firms of investment in Eastern Europe has changed. The classic tradeoff now seems to exist in product and service markets: for a variety of reasons risk is perceived to be lower than a decade ago, but so are returns. However, the same does not appear to hold true financial markets in Eastern Europe where financial executivesstill perceive market inefficiencies and ineffectiveness. EU accession and adoption of the Euro by Eastern European countries are viewed wery positively bu US financial executives, and these events may serve to improve the funcitoning of financial markets there as well
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