1. Apart from leveraging to finance their growth, Dubai looked at other investment opportunities. i.e. investing in Vietnam.
I wonder if Dubai will require higher return on equity from their investments now?
2. Intuitively, it can be argued that after the event of the Dubai World standstill proposal, investors will be more cautious toward emerging markets.
However, no two countries are the same. Emerging markets like China, India and Vietnam have much larger populations (effectively markets for many industries) and are more diversified.
Dubai effect will ripple through, but not so devastating.
3. Nevertheless, a lesson can be drawn from excessively-leveraged development and the risk of change in credit ratings.
Finance
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china, credit, debt, dubai, emerging, equity, growth, india, investment, leverage, market, opportunity, rating, return, vietnam
Social Media and Alpha
From the perspective of a funds manager, social media create:
- Information inflow: for alpha capture
- Information outflow: to influence the market
Social Media and Corporate Governance
1. Individual investors have more tools for monitoring the companies they own.
2. Bargain:
Traditionally investors have certain tools in hand to influence the companies: board, proxy fight, external audit, internal audit, credit rating agencies
Social media supplements mass media in strategies in corporate decision, social attitude and regulation bargaining.
The power of Social Media should not be overlooked, as many will be tempted to use these low-cost tools.
Finance
| agency, alpha, audit, bargain, board, corporate-finance, credit, investment, market, proxy, social-media
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