A practical approach for quantifying country risk

Jaime Sabal Cárdenas

A practical approach for quantifying country risk

Jaime Sabal Cárdenas

Producció científica: Article en revista no indexada › Article

Resum

In most emerging market valuations a country risk premium is added to the CAPM discount rate of an equivalent investment in a developed market. However, this is not only a flawed procedure but also it is extremely difficult to gauge how country risk might affect the discount rate. In this paper a practical method is proposed to appraise country risk mainly through its impact on projected cash flows, leaving its possible effect on the discount rate as a secondary consideration.

Idioma original	Anglès
Pàgines	50-63
Publicació especialitzada	GCG: Revista de Globalización, Competitividad y Gobernabilidad = GCG: Journal of Globalization, Competitiveness and Governability = GCG: Revista de Globalização, Competitividade e Governabilidade
Estat de la publicació	Publicada - 1 de des. 2008

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title = "A practical approach for quantifying country risk",

abstract = "In most emerging market valuations a country risk premium is added to the CAPM discount rate of an equivalent investment in a developed market. However, this is not only a flawed procedure but also it is extremely difficult to gauge how country risk might affect the discount rate. In this paper a practical method is proposed to appraise country risk mainly through its impact on projected cash flows, leaving its possible effect on the discount rate as a secondary consideration.",

author = "\{Sabal C{\'a}rdenas\}, Jaime",

year = "2008",

month = dec,

day = "1",

language = "English",

pages = "50--63",

journal = "GCG: Revista de Globalizaci{\'o}n, Competitividad y Gobernabilidad = GCG: Journal of Globalization, Competitiveness and Governability = GCG: Revista de Globaliza{\c c}{\~a}o, Competitividade e Governabilidade",

issn = "1988-7116",

publisher = "Georgetown University",

}

A practical approach for quantifying country risk. / Sabal Cárdenas, Jaime.
In: GCG: Revista de Globalización, Competitividad y Gobernabilidad = GCG: Journal of Globalization, Competitiveness and Governability = GCG: Revista de Globalização, Competitividade e Governabilidade, 01.12.2008, pàg. 50-63.

Producció científica: Article en revista no indexada › Article

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T1 - A practical approach for quantifying country risk

AU - Sabal Cárdenas, Jaime

PY - 2008/12/1

Y1 - 2008/12/1

N2 - In most emerging market valuations a country risk premium is added to the CAPM discount rate of an equivalent investment in a developed market. However, this is not only a flawed procedure but also it is extremely difficult to gauge how country risk might affect the discount rate. In this paper a practical method is proposed to appraise country risk mainly through its impact on projected cash flows, leaving its possible effect on the discount rate as a secondary consideration.

AB - In most emerging market valuations a country risk premium is added to the CAPM discount rate of an equivalent investment in a developed market. However, this is not only a flawed procedure but also it is extremely difficult to gauge how country risk might affect the discount rate. In this paper a practical method is proposed to appraise country risk mainly through its impact on projected cash flows, leaving its possible effect on the discount rate as a secondary consideration.

M3 - Article

SN - 1988-7116

SP - 50

EP - 63

JO - GCG: Revista de Globalización, Competitividad y Gobernabilidad = GCG: Journal of Globalization, Competitiveness and Governability = GCG: Revista de Globalização, Competitividade e Governabilidade

JF - GCG: Revista de Globalización, Competitividad y Gobernabilidad = GCG: Journal of Globalization, Competitiveness and Governability = GCG: Revista de Globalização, Competitividade e Governabilidade

ER -

A practical approach for quantifying country risk

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