According to Kerner, the application of indicators to assess capital expenditures majority-owned members is significant since it helps in developing an illustration of illiquid assets belonging to foreign multinational corporations (MNCs). Consequently, it enables researchers to assess the possible political risks which may arise from the assets (Kerner, 2014). To reiterate his argument, Kerner employs the new measure along with the stock indicators and foreign direct investment (FDI) as a strategy to investigate the relationship between FDI and democracy that has witnessed conflicting outcomes. Kerner also argues that researchers rely on using FDI net inflows and stock to comprehend the functions at MNCS rather than investigating with a clearly to understand the shortcomings of using these measures [Show Less]