Publication Type
Journal Article
Version
acceptedVersion
Publication Date
12-2022
Abstract
Most emerging markets have weak legal and institutional environments that generally lead to low levels of predictability and legal certainty. Moreover, the insolvency framework of most emerging markets is very inefficient, providing creditors with low recovery rates. Therefore, extending credit to companies in emerging economies may result in additional risks for lenders. This article explains how lenders can navigate some of these risks. By doing so, it is expected that, as a result of the higher level of creditor protection, companies in emerging markets will be able to have greater access to finance. Therefore, these strategies can ultimately benefit debtors and creditors and promote economic growth in emerging markets.
Discipline
Business Organizations Law | Portfolio and Security Analysis
Research Areas
Corporate, Finance and Securities Law
Publication
Journal of Portfolio Management
Volume
48
Issue
8
First Page
95
Last Page
108
ISSN
0095-4918
Identifier
10.3905/jpm.2022.1.381
Publisher
Institutional Investor Inc
Citation
Aurelio GURREA-MARTINEZ and DALY, Elena.
Navigating insolvency risks in emerging markets. (2022). Journal of Portfolio Management. 48, (8), 95-108.
Available at: https://ink.library.smu.edu.sg/sol_research/4608
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.3905/jpm.2022.1.381
