Investing in emerging markets requires a careful analysis of potential risks and benefits that vary greatly from country to country. Informed investors and firms must devise their own system of assessing risk when considering investments in these regions-systems that often omit influential factors and fail to respond flexibly to swiftly changing conditions, be they political, economic, or otherwise. Cracking the Emerging Markets Enigma outlines a rigorous, comprehensive, and practical framework for evaluating the opportunities and, more importantly, the risks of investing in emerging markets. Built on a foundation of sound research on foreign direct and portfolio capital flows, Andrew Karolyi's proposed system of evaluation incorporates multiple dimensions of the potential risks faced by prospective investors in an empirically coherent framework. These dimensions of risk reflect the uneven quality or fragility of the various institutions designed to assure integrity in capital markets. By distilling these analyses into a numerical scoring system, Karolyi has devised a way to assess emerging markets by different dimensions of risk and across all dimensions together. This novel assessment framework has been tested in the private sector to great success. Researchers, students, firms, and both seasoned and novice investors are poised to gain a clear understanding of how to evaluate potential investments in emerging markets to maximize profit.

About the Author
G. Andrew Karolyi is Alumni Professor of Asset Management, Professor of Finance, and Co-Director of the Emerging Markets Institute in the Johnson Graduate School of Management at Cornell University.

Reviews
Andrew Karolyi has a long track record of distinguished scholarship on international financial markets. This important book on the fundamental risks associated with investing in emerging markets shares many of the lessons of his writing. Anyone who cares about investing in emerging markets should consider Karolyi's new framework. This is an especially important book because it lets data and evidence talk loudly and clearly. Cracking the Emerging Markets Enigma provides a practical framework that highlights for asset owners, consultants, and professional asset managers the fundamental risks of investing in emerging markets. Readers will be inspired by the lucid arguments and, as investors, will be better prepared for the next hard decision they will face in the emerging market space. * David Booth, Chairman and Co-CEO, and Eduardo Repetto, Co-CEO and Co-CIO, Dimensional Fund Advisors *



Book Information
ISBN 9780199336623
Author G. Andrew Karolyi
Format Hardback
Page Count 312
Imprint Oxford University Press Inc
Publisher Oxford University Press Inc
Weight(grams) 544g
Dimensions(mm) 157mm * 241mm * 20mm