1. Is Transaction Cost Economics Behavioral? -- 2. Clarifying Key Terms and Philosophical Foundations of Transaction Cost Economics -- 3. Opportunism and Bounded Rationality in Transaction Cost Economics: Values, Attitudes, or Behaviors? -- 4. Modeling Bounded Rationality: Mediation or...

This paper investigates how multinational firms choose their capital structure in response to political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we distinguish different types of political risk, like expropriation, corruption...