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Emerging Markets Related Scholarly Compositions
See also:
Emerging Markets
Related News,
Emerging Markets
Related Books,
or
Emerging Markets Home Page.
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Alternative Approaches to
Financial Crises in Emerging Markets
by Jeffrey D. Sachs
Abstract
Developing countries fall into international financial crises
for a variety of reasons, including fiscal profligacy, exchange
rate mismanagement, international financial shocks, financial
liberalization, and weaknesses in the domestic banking
sector. Market expectations may play an independent role in a
financial crisis, by triggering a self-fulfilling financial
panic. International public policy should be aimed first and
foremost at avoiding financial crises, but must also be prepared
to ameliorate financial crises after they begin...
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Contagion In Emerging Markets:
When Wall Street is a Carrier
by Guillermo A. Calvo
University of Maryland
May 2, 1999
Abstract
The paper examines the case in which the capital market is
populated by informed and uninformed investors. The uninformed
try to extract information from informed investors’ trades. This
opens up the possibility that if informed investors are forced
to sell emerging market securities to meet margin calls, for
example, this action may be misread by the uninformed investors
as signaling low returns in emerging markets...
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Corporate Governance, Investor
Protection, and Performance in Emerging Markets
by Leora F. Klapper & Inessa Love
The World Bank
Abstract
We use recent data on firm-level corporate governance rankings
across 14 emerging markets and find that there is wide variation
in firm-level governance in our sample and that the average
firm-level governance is lower in countries with weaker legal
systems. We explore the determinants of firm-level governance
and find that governance is correlated with the extent of the
asymmetric information and contracting imperfections that firms
face. We also find that better corporate governance is highly
correlated with better operating performance and market
valuation...
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The Cost of Equity in Emerging
Markets: A Downside Risk Approach
by Javier Estrada
IESE - Department of Finance (Barcelona, Spain)
August, 2000
Abstract
Every company evaluating an investment project or an acquisition
in an emerging
market must not only estimate future cash flows but also an
appropriate discount rate. Although not free from controversy,
the cost of equity in developed markets is typically estimated
with the CAPM. In emerging markets, however, betas and stock
returns seem to be unrelated...
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Cross-Border Listings, Capital
Controls, and Equity Flows to Emerging Markets
by Hali Edison & Francis E. Warnock
International Monetary Fund
December, 2003
Abstract
International capital flows have skyrocketed over the past
decade. Net private capital flows to emerging market countries
tripled from $50 billion a year during 1987–89 to more than $150
billion a year over 1995–97. These flows, however, receded
somewhat with the 1997–99 financial crises that spread from Asia
to Russia and on to Latin America...
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Does Foreign Ownership Contribute
to Sounder Banks in Emerging Markets? The Latin American
Experience
by Jennifer S. Crystal, B. Gerard Dages, & Linda S. Goldberg
by Federal Reserve Bank of New York
May 29, 2001
Abstract
Foreign bank entrants into emerging markets are usually thought
to improve the condition and performance of acquired
institutions, and more generally to enhance local financial
stability. We use bank-specific data for a range of Latin
American countries since the mid-1990s to address elements of
this claim. Across the seven largest countries, we find that the
financial strength ratings of local banks acquired by foreign
entities generally show a slight improvement relative to their
domestic counterparts...
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Emerging Markets Finance
by Geert Bekaert & Campbell R. Harvey
Columbia University, Duke University, & National Bureau of
Economic Research
December 10, 2002
Abstract
Emerging markets have long posed a challenge for finance.
Standard models are often ill suited to deal with the specific
circumstances arising in these markets. However, the interest in
emerging markets has provided impetus for both the adaptation of
current models to new circumstances in these markets and the
development of new models. The model of market integration and
segmentation is our starting point. Next, we emphasize the
distinction between market liberalization and integration. We
explore the financial effects of market integration, as well as
the impact on the real economy. We also consider a host of other
issues such as contagion, corporate finance, market
microstructure and stock selection in emerging markets. Apart
from surveying the literature, this article contains new results
regarding political risk and liberalization, the volatility of
capital flows, and the performance of emerging market
investments.
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Equity Ownership and Firm Value
in Emerging Markets
by Karl V. Lins
David Eccles School of Business - University of Utah
August 5, 2002
Abstract
This paper investigates whether management ownership structures
and large non-management blockholders are related to firm value
across a sample of 1433 firms from 18 emerging markets. When a
management group’s control rights exceed its cash flow rights, I
find that firm values are lower. I also find that large
non-management control rights blockholdings are positively
related to firm value...
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Financial Crises in Emerging
Markets: A Canonical Model
by Roberto Chang and Andrés Velasco
Federal Reserve Bank of Atlanta
July, 1998
Abstract
We present a simple model that can account for the main features
of recent financial crises in emerging markets. The
international illiquidity of the domestic financial system is at
the center of the problem. Illiquid banks are a necessary and a
sufficient condition for financial crises to occur...
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Financial Crises in Emerging
Markets: The Lessons From 1995
by Jeffrey Sachs, Aaron Tornell, & Andres Velasco
The Weatherhead Center for International Affairs
January, 1997
Abstract
The Mexican Peso crisis of December 1994 and its reverberations
in financial
markets of developing countries around the world have
intensified the debate
over the nature of balance of payments crises in developing
countries. Many
simple explanations have been given for the Mexican crisis and
its aftermath, but
none of them does very well in accounting for the main contours
of emerging
market behavior in late 1994 and 1995. For example, many
observers have claimed that it was Mexico's yawning current
account deficit in 1994 that led to
the drying up of capital inflows to Mexico and thereby to the
collapse of the Peso...
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The Future of Business Groups In
Emerging Markets: Long Run Evidence From Chile
by Tarun Khanna & Krishna Palepu
Harvard Business School
December 16, 1998
Abstract
We demonstrate variation in the extent to which firms benefit
from their affiliation with Chilean business groups in the
1988-1996 period. The net benefits of unrelated diversification
are positive if group diversification exceeds a threshold level,
though this threshold increases with time. We find evidence of
non-diversification related group benefits, which atrophy over
time...
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Hedge Funds and the Asian
Currency Crisis of 1997
by Stephen J. Brown, William N. Goetzmann, & James Park
NYU Stern School of Business, Yale School of Management, & Long
Island University
January 13, 1998
Abstract
We test the hypothesis that hedge funds were responsible for the
crash in the Asian currencies in late 1997. To do so, we develop
estimates of the changing positions of the largest ten currency
funds in one currency, the Malaysian ringgit and to a basket of
Asian currencies. Our methodology is adapted from the Sharpe’s
(1992) style analysis approach that decomposes fund returns...
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Is Corporate Diversification
Beneficial in Emerging Markets?
by Karl V. Lins and Henri Servaes
Abstract
Using a sample of over 1000 firms from seven emerging markets in
1995, we find that diversified firms trade at a discount of
approximately 7% compared to single-segment firms. Diversified
firms are also less profitable than single segment firms, but
lower profitability only explains part of the discount. We find
a
discount only for those firms that are part of industrial
groups, and for diversified firms with management ownership
concentration between 10% and 30%...
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Is corporate governance ineffective in emerging markets?
by Michael S. Gibson
Abstract
I test whether
corporate governance is ineffective in emerging markets by
estimating the link between CEO turnover and firm performance
for over 1,200 firms in eight emerging markets. I find two main
results. First, CEOs of emerging market firms are more likely to
lose their jobs when their firm's performance is poor,
suggesting that corporate governance is not ineffective in
emerging markets. Second, for the subset of firms with a large
domestic shareholder, there is no link between CEO turnover and
firm performance. For this subset of emerging market firms,
corporate governance appears to be ineffective.
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Liquidity and Expected Returns: Lessons from Emerging Markets
(Working Paper)
by Geert Bekaert, Campbell R. Harvey, & Christian Lundblad
Columbia University, Duke University, & Indiana University
September 8, 2003
Abstract
Given the cross-sectional and temporal variation in their
liquidity, emerging equity markets provide an ideal setting to
examine the impact of liquidity on expected returns. Our measure
of liquidity is the proportion of zero daily firm returns,
averaged over the month. We find that this liquidity measure
significantly predicts future returns, whereas alternative
measures such as turnover do not. Consistent with liquidity
being a priced factor, unexpected liquidity shocks are
positively correlated with return shocks and negatively
correlated with shocks to the dividend yield. Equity market
liberalization significantly improves the level of liquidity,
but has no significant effect on the relationship between
liquidity and future returns. We consider a simple asset pricing
model with liquidity and the market portfolio as risk factors,
differentiating between integrated and segmented countries and
periods. Models with local liquidity risks outperform all others
models.
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Predictable Risk and Returns in
Emerging Markets
by Campbell R. Harvey
Duke University and National Bureau of Economic Research
1995
Abstract
The emergence of new equity markets in Europe, Latin America
Asia, the Mid-east and Africa pro-vides a new menu of
opportunities for investors. These markets exhibit high expected
returns as well as high volatility. Importantly, the low
correlations with developed countries’ equity markets
significantly reduces the unconditional portfolio risk of a
world investor. However, standard global asset pricing models,
which assume complete integration of capital markets, fail to
explain the cross section of average returns in emerging
countries. An analysis of the predictability of the returns
reveals that emerging market returns are more likely than
developed countries to be influenced by local information.
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Rating Banks in Emerging Markets:
What Credit Rating Agencies Should Learn From Financial
Indicators
by Liliana Rojas-Suarez
Institute for International Economics
Abstract
The rating agencies’ and bank supervisors’ records of prompt
identification of banking problems in emerging markets has not
been satisfactory. This paper suggests that such deficiencies
could be explained by the use of financial indicators that,
while appropriate for industrial countries, do not work in
emerging
markets. Among the conclusions, this paper shows that the most
commonly used indicator of banking problems in industrial
countries, the capital-to-asset ratio, has performed poorly as
an indicator of banking problems in Latin America and East
Asia...
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Research in Emerging Markets
Finance: Looking to the Future
by Geert Bekaert & Campbell R. Harvey
Columbia University, Duke University, & National Bureau of
Economic Research
September 11, 2002
Abstract
Much has been learned about emerging markets finance over the
past 20 years. These markets have attracted a unique
interdisciplinary interest that bridges both investment and
corporate finance with international economics, development
economics, law, demographics and political science. Our paper
focuses on the research areas that are ripe for exploration.
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Tax Policy for Emerging Markets:
Developing Countries
by Vito Tanzi & Howell H. Zee
International Monetary Fund, Washington, DC
Abstract
This paper discusses important tax policy issues facing
developing countries today. It views tax policy from both the
mac-roeconomic perspective, which focuses on broad questions
such as the level and composition of tax revenue, and the
microeconomic perspective, which focuses on certain design
aspects of selected major taxes, such as the personal income
tax, the corporate income tax,
the value-added tax, excises, and import tariffs. It provides a
re-view of the role of tax incentives in these countries, and
identifies some policy challenges posed by the globalization of
the world economy...
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Understanding
Emerging Market Bonds
by Claude
B. Erb, Campbell R.
Harvey, & Tadas E. Viskanta
Liberty Mutual Insurance Company & Duke University
October 21, 1999
Abstract
Although emerging market bonds have been a investment option for
centuries, only in the last decade have we had the data to begin
to study their behavior. According to this data emerging market
bonds have had high volatility, negative skewness and low, but
increasing, correlation with existing asset classes. Not
surprisingly we find that as with other asset classes, country
risk plays an important role in the pricing of emerging market
bonds. We also introduce a measure of market sentiment for
emerging market bonds. For many investors the extreme
characteristics of emerging market bonds will make it difficult
for them to invest, for others we provide some insight on means
for emerging market bond investments.
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Back to Scholarly Compositions
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