The Best of Both Worlds: Accessing Emerging Economies by Investing in Developed Markets

Bae, Joon Woo; Elkamhi, Redouane; Simutin, Mikhail

doi:10.2139/ssrn.2633557

Cited by 3 publications

(1 citation statement)

References 49 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…7 A pair of studies by Bekaert et al (2011Bekaert et al ( , 2013 took a di¤erent approach by examining di¤erences in earnings yields rather than their correlations or correlations of stock returns. 8 Finally, Bae et al (2019) use bilateral export date from developed countries to form emerging market country indexes based on the share prices of developed country …rms that sell to emerging markets. The revenue data that we use are broader than export data (because a multinational's foreign sales to an emerging market need not involve any exports at all or at least any exports from its country of domicile).…”

mentioning

confidence: 99%

Firms’ exposures to geographic risks

Dumas

Marston

2022

Journal of International Money and Finance

View full text Add to dashboard Cite

mentioning

confidence: 99%

Firms’ exposures to geographic risks

Dumas

Marston

2022

Journal of International Money and Finance

View full text Add to dashboard Cite

Factors vs. Sectors in Asset Allocation: Stronger Together?

Brière

Szafarz

2017

SSRN Journal

View full text Add to dashboard Cite

This paper compares and contrasts factor investing and sector investing, and then seeks a compromise by optimally exploiting the advantages of both styles. Our results show that sector investing is effective for reducing risk through diversification while factor investing is better for capturing risk premia and so pushing up returns. This suggests that there is room for potentially fruitful combinations of the two styles. Presumably, by combining factors and sectors, investors would benefit both from the diversification potential of the former and the risk premia of the latter. The tests reveal that composite strategies are particularly attractive; they confirm that sector investing helps reduce risks during crisis periods, while factor investing can boost returns during quiet times.

show abstract

Firms' Exposures to Geographic Risks

Dumas¹,

Gabuniya²,

Marston³

2020

View full text Add to dashboard Cite

The distinction between domicile and place of business is becoming more and more relevant as a growing number of firms have activities abroad. In most statistical studies of international stock returns, a firm is included in a country's index if its headquarters are located in that country. This classification scheme ignores the operations of the firm. We propose, instead, to measure the firms' exposures to "geographic zones" according to the place where they conduct business. As a representation of "geographic risks", we synthesize zone factors from all firms in the dataset, be they domestic firms or multinationals. And we show the properties of the exposures to the zone factors.

show abstract

The Best of Both Worlds: Accessing Emerging Economies by Investing in Developed Markets

Cited by 3 publications

References 49 publications

Firms’ exposures to geographic risks

Firms’ exposures to geographic risks

Factors vs. Sectors in Asset Allocation: Stronger Together?

Firms' Exposures to Geographic Risks

Contact Info

Product

Resources

About