- Title Pages
- Acknowledgments
- Contributors
- 1 International Finance: An Overview
- 2 A Primer on Exchange Rate Behavior
- 3 Markets and International Interest Rate Parity
- 4 Corporate Risk Management in the Multinational Firm
- 5 Central Banks and Economic Policy after the Crisis: What Have We Learned?
- 6 International Financial Integration: Benefits, Costs, and Policy Challenges
- 7 Links between International Financial Markets and Volatility
- 8 Challenges in Financial Regulation
- 9 International Equity Markets: Risk and Return
- 10 International Corporate Debt Markets
- 11 Financing International Trade
- 12 Cross-Listing Behavior
- 13 International Regulatory Regimes
- 14 Asset Pricing in an International Setting
- 15 The Home Bias Puzzle in Equity Portfolios
- 16 Investing in Emerging and Developing Markets
- 17 International Investment Patterns
- 18 Integrated versus Segmented Capital Markets: Implications for Financial Decision-Making
- 19 Multinational Capital Budgeting: Valuing Cross-Border Investments
- 20 Multinational Restructuring
- 21 Corporate Management of Foreign Currency Risk: Conceptual Framework, Policies, and Strategies
- 22 Multinational Cost of Capital and Capital Structure
- 23 Dividend Policy across Countries
- 24 International Governance and Convergence
- 25 Business Bankruptcies across Countries and the Law
- 26 Alternative Financing Methods
- 27 Differences in Ownership Structures across Countries
- 28 Understanding Financial Market Failures
- Discussion Questions and Answers
- Index
Investing in Emerging and Developing Markets
Investing in Emerging and Developing Markets
- Chapter:
- (p.331) 16 Investing in Emerging and Developing Markets
- Source:
- International Finance
- Author(s):
JENNY BERRILL
COLM KEARNEY
- Publisher:
- Oxford University Press
This chapter outlines the characteristics of investing in emerging and developing markets. It first clarifies the different definitions and interpretations of emerging markets and then provides a mean-variance analysis of emerging market investment and offers evidence on the recent performance of emerging markets. Next, the chapter details the main risks and problems associated with investing in emerging markets under the headings of liquidity, information asymmetry, corporate governance, and market efficiency. It further reviews the literature on the factors that influence country and stock selection. Having reviewed the benefits and risks from direct investment in emerging markets, the chapter closes by detailing the benefits and risks from indirect investment in emerging markets using domestic assets that represent claims on foreign assets.
Keywords: emerging markets, portfolio investment, direct and indirect investment vehicles
Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .
- Title Pages
- Acknowledgments
- Contributors
- 1 International Finance: An Overview
- 2 A Primer on Exchange Rate Behavior
- 3 Markets and International Interest Rate Parity
- 4 Corporate Risk Management in the Multinational Firm
- 5 Central Banks and Economic Policy after the Crisis: What Have We Learned?
- 6 International Financial Integration: Benefits, Costs, and Policy Challenges
- 7 Links between International Financial Markets and Volatility
- 8 Challenges in Financial Regulation
- 9 International Equity Markets: Risk and Return
- 10 International Corporate Debt Markets
- 11 Financing International Trade
- 12 Cross-Listing Behavior
- 13 International Regulatory Regimes
- 14 Asset Pricing in an International Setting
- 15 The Home Bias Puzzle in Equity Portfolios
- 16 Investing in Emerging and Developing Markets
- 17 International Investment Patterns
- 18 Integrated versus Segmented Capital Markets: Implications for Financial Decision-Making
- 19 Multinational Capital Budgeting: Valuing Cross-Border Investments
- 20 Multinational Restructuring
- 21 Corporate Management of Foreign Currency Risk: Conceptual Framework, Policies, and Strategies
- 22 Multinational Cost of Capital and Capital Structure
- 23 Dividend Policy across Countries
- 24 International Governance and Convergence
- 25 Business Bankruptcies across Countries and the Law
- 26 Alternative Financing Methods
- 27 Differences in Ownership Structures across Countries
- 28 Understanding Financial Market Failures
- Discussion Questions and Answers
- Index
