Overseas Investors Get Guidance from PwC's Opacity Index

PricewaterhouseCoopers has released the initial results of research prepared by a team of economists under the auspices of the PwC Endowment for the Study of Transparency and Sustainability. The Opacity Index, an analytical model developed by this group, will provide guidance to policy makers and business leaders who are considering the economic impact of international business development.

Opacity, for purposes of this model, is defined as the lack of "clear, accurate, formal, and widely-accepted practices." Potential borrowers will be able to use this index to determine the borrowing costs and foreign investment obstacles imposed by the opacity in the following areas:

  • Legal protections for business
  • Macro-economic policies
  • Corporate reporting
  • Corruption
  • Government regulations
  • The initial report includes results of studies of the opacity factor in 35 countries. It is projected that results will be published within 18 months for most of the world's significant economies.

    The report looks at the impact of opacity from the perspective of its impact as a form of hidden corporate tax as well as the risk premium present when countries borrow through sovereign bond issuance. Besides the report providing information to potential investors, developing countries will be able to study the results of this report and take actions to decrease their opacity factor, which may stimulate international investment.

    An analysis and the complete report are available at the PricewaterhouseCoopers web site.

    You may like these other stories...

    By Jason Bramwell, Staff Writer CPAs in New Jersey, New York, and Pennsylvania believe economic conditions in the United States will likely be the same one year from now, and while they predict higher business revenues...
    By Jason Bramwell Managers in accounting, finance, and IT are cautiously optimistic about their hiring plans for the fourth quarter of 2013, according to a new hiring outlook survey from staffing firm Brilliant. ...
    By Jason Bramwell CPA firms in 2012 posted their first respectable increases in revenues since before the start of the recession; however, professional staff turnover last year rose approximately 50 percent across the...

    Upcoming CPE Webinars

    Apr 22
    Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
    Apr 24
    In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
    Apr 25
    This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
    Apr 30
    During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.