Valuation Cost of Equity Capital in the Conditions of Economic Instability on Emerging Markets (by the Example of Russia)

2017 ◽  
pp. 383-391
Author(s):  
Elena A. Kolesnichenko ◽  
Vladislav Y. Sutyagin ◽  
Yana Yu. Radyukova ◽  
Valentina V. Smagina ◽  
Inna N. Yakunina
Keyword(s):  
Emerging Markets ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Economic Instability

scholarly journals Corporate governance in emerging markets and its impact on finance performance

2014 ◽  
Vol 12 (1) ◽  
pp. 625-632 ◽  
Author(s):  
Edmundo Lizarzaburu Bolaños ◽  
Luis Berggrun ◽  
Kurt Johnny Burneo Farfan
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Capital Structure ◽  
Board Of Directors ◽  
Insider Trading ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Multiple Issues ◽  
The Impact

This paper reviews the theoretical framework of Corporate Governance and multiple issues in which it is evaluated such as agency costs, asymmetric information, insider trading, manipulation of earnings, Board of Directors, etc. Finally, it is reviewed the impact of Corporate Governance over cost of equity, capital structure and financial performance

scholarly journals Estimation of Discount Rates in Latin America: empirical evidence and challenges

2010 ◽  
Vol 15 (28) ◽  
pp. 7-43
Author(s):  
Darcy Fuenzalida ◽  
◽  
Samuel Mongrut ◽  
Keyword(s):  
Emerging Markets ◽  
Latin American ◽  
World Market ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Discount Rates ◽  
Economic Sectors ◽  
The Cost ◽  
Better Than

This paper compares the main proposals that have been made in order to estimate discount rates in emerging markets. Seven methods are used to estimate the cost of equity capital in the case of global well-diversified investors; two methods are used to estimate it in the case of imperfectly diversified local institutional investors; and one method is used to estimate the required return in the case of non-diversified entrepreneurs. Using the first nine methods, one estimates the costs of equity for all economic sectors in six Latin American emerging markets. Consistently with studies applied to other regions, a great deal of disparity is observed between the discount rates obtained across the different models, which implies that no model is better than the others. Likewise, the paper shows that Latin American markets are in a process of becoming more integrated with the world market because discount rates have decreased consistently during the first five-year period of the XXI Century. Finally, one identifies several challenges that have to be tackled to estimate discount rates and valuate investment opportunities in emerging markets.

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