 Towards a deeper comprehension of unlevered betas in emerging markets: Gordon and a regression stock valuation modelPablo José Arana Barbier International Journal of Economic Policy in Emerging Economies, 2023, vol. 17, issue 4, 586-599 Abstract: Unlevered betas determination in emerging markets remains a challenge because of the lack of formal tropicalised procedures. Replication of methods built for developed markets only generate biases. The study proposes a standardised procedure through the match of two asset pricing models in order to calculate unlevered betas more appropriately for a specific industry in an emerging market. The paper found that the model proposed permits a successful calculation of an unlevered beta which significantly correlates with the one estimated through the market line's slope without recurring to any preconceived indicators from developed markets. Also, the CAPM is reconfirmed as an appropriate opportunity cost for valuation, but dismisses inflation and country risk as part of its composition. Additionally, the paper identifies the main challenges among unlevered betas' calculation in emerging countries and proposes future research opportunities regarding this issue. Keywords: asset pricing; capital asset pricing model; CAPM; emerging markets; levered betas; panel data multiple linear regression; perpetuity; stock valuation; stock valuation in emerging countries; unlevered betas; valuation models. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijepee:v:17:y:2023:i:4:p:586-599 Access Statistics for this article More articles in International Journal of Economic Policy in Emerging Economies from Inderscience Enterprises Ltd |
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