MSCI Inc. (NYSE:MSC), a leading provider of investment decision support tools worldwide, has launched MSCI ESG AGR Emerging Markets, designed to help institutional investors assess accounting risk in over 50 emerging markets countries. The MSCI ESG AGR Emerging Markets model, which is designed to identify anomalies in key profit and loss and balance sheet ratios, covers approximately 9,000 companies including those reporting under local Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). The new tool is designed for institutional investors, banks, insurance companies and other financial institutions concerned about financial transparency in emerging markets.
"As we have seen in a number of past instances, aggressive or erroneous accounting practices have resulted in significant financial losses for the companies involved in such practices. With MSCI ESG AGR Emerging Markets, we offer our clients a tool to assess this increasingly important part of the global markets by looking for anomalies in financial statements that may warrant further scrutiny," said Howard Sherman, Head of Corporate Governance Business Development. "It is a natural complement to other risk assessment tools offered by MSCI."