COST OF CAPITAL IN EMERGING MARKETS: BRIDGING GAPS BETWEEN THEORY AND PRACTICE

dc.creator	Walker,Eduardo
dc.date	2016-12-01
dc.date.accessioned	2019-04-25T12:42:06Z
dc.date.available	2019-04-25T12:42:06Z
dc.identifier	https://scielo.conicyt.cl/scielo.php?script=sci_arttext&pid=S0719-04332016000100006
dc.identifier.uri	http://revistaschilenas.uchile.cl/handle/2250/61352
dc.description	An important parameter for asset and project valuation is the opportunity cost of the capital invested, which depends on the systematic risks assumed. Having many angles, the existing literature has not fully resolved the issue for emerging markets. The evidence reviewed in this article suggests that we should at least consider exposure to market risk and country credit risk factors. After reviewing the theoretical and applied literature on cost of capital determination and international asset pricing models, the paper identifies and applies methodologies to determine discount rates applicable to emerging markets for different countries and currencies and develops methodologies for empirically measuring exposure to the country credit risk factor.
dc.format	text/html
dc.language	en
dc.publisher	Pontificia Universidad Católica de Chile. Instituto de Economía.
dc.relation	10.7764/LAJE.53.1.111
dc.rights	info:eu-repo/semantics/openAccess
dc.source	Latin american journal of economics v.53 n.1 2016
dc.subject	Cost of capital
dc.subject	emerging markets
dc.subject	market risk
dc.subject	credit risk
dc.subject	currency risk
dc.title	COST OF CAPITAL IN EMERGING MARKETS: BRIDGING GAPS BETWEEN THEORY AND PRACTICE