Information Channels in Frontier Emerging Markets

Building informational efficiency


Informational efficiency can only exist to the degree to which information about individual companies reaches the investor. This chapter raises the question: How do foreign investors learn about the pre-emerging stock market of Russia and its companies? After establishing that the main channel of information is brokerage research reports, a more detailed analysis is conducted about individual companies and their transparency in light of this predominant information channel. Finally, three portfolios are created: (1) top-transparency portfolio, (2) medium-transparency portfolio, and (3) bottom-transparency portfolio. The creation of the three portfolios is supported by the AK&M survey which ranks companies by their degree of information disclosure.1 The three portfolios will be used in chapter 7 as a prerequisite for the comparative analysis of relative market efficiency.


Foreign Investor Information Disclosure Information Channel Investor Sentiment Individual Security 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© Kluwer Academic Publishers 1999

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