search query: @indexterm CAPM / total: 22
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| Author: | Cooper, I.A. Kaplanis, E. |
| Title: | Partially segmented international capital markets and international capital budgeting |
| Journal: | Journal of International Money and Finance
2000 : JUN, VOL. 19:3, p. 309-329 |
| Index terms: | Market segmentation International Capital Budgeting Costs CAPM Models |
| Freeterms: | Market integration |
| Language: | eng |
| Abstract: | Evidence suggests that international capital markets are neither fully integrated nor completely segmented. However, currently there is a lack of methodology. This paper uses a model of partially integrated international capital markets to derive optimal international capital budgeting rules. It is shown how capital budgeting rules depend on the level of investor costs to cross-border investment, both directly and also indirectly through the portfolio specialization they induce. It is explained among others how required returns differ for different companies raising capital in such markets and how these costs of capital may be estimated. |
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