JOURNAL OF ACCOUNTING AND FINANCE
Do U.S. Investors Benefit from Investing in Frontier Equity Markets?
Author(s): Ki C. Han, Sukhun Lee, David Y. Suk, Hyun Mo Sung
Citation: Ki C. Han, Sukhun Lee, David Y. Suk, Hyun Mo Sung, (2018) "Do U.S. Investors Benefit from Investing in Frontier Equity Markets?", Journal of Accounting and Finance, Vol. 18, ss. 6, pp. 115-127
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This study examines whether investing in frontier markets is beneficial to U.S. investors. The results are not so encouraging. First, the change in currency exchange rate weakens the benefit of overseas
investment. Second, the correlations between the U.S. market and the frontier markets rose over time.
Third, most of the frontier markets in the sample scored lower Sharpe Ratios than the U.S. market.
Fourth, the frontier markets and their currency markets move in the same direction. Finally, frontier
markets are more sensitive to the U.S. market return when it falls rather than when it rises.