A systematic literature review of MSCI index classifications: trends, gaps and future directions
Xu Chen, Qinqin Xia, Duc Hong Thi PhanPurpose
This article conducts a systematic review of the literature on Morgan Stanley Capital International (MSCI) Developed, Emerging and Frontier Markets indices, categorising existing studies by theme and identifying gaps for future research.
Design/methodology/approach
Using keyword searches in the Web of Science database, relevant papers are identified, classified and analysed. We also apply Biblioshiny, a bibliometric analysis tool, to evaluate influential topics and identify research gaps.
Findings
The themes developed are: (1) predicting returns/volatility, (2) market performance, (3) information/volatility linkages, (4) market efficiency, (5) behaviour, (6) corporate finance and (7) the construction and operation of the indices. The study also identifies five research gaps that inform a future research agenda. These are: (1) the role of accounting information in mediating investor behaviour, (2) frontier markets as a financial periphery, (3) corporate finance in frontier markets, (4) MSCI classification criteria and consequences and (5) environmental finance in frontier markets. Developed markets are the most studied, while studies of emerging and frontier markets and investor behaviour are less prevalent.
Research limitations/implications
Sampling bias may be a limitation due to reliance on keyword searches in a single database.
Practical implications
The identification of research gaps informs a future research agenda.
Originality/value
By synthesising a fragmented, finance-centric body of literature, this review develops a new conceptual framework, positioning MSCI market classification as a critical, non-market institutional force shaping corporate information environments globally. In particular, by identifying that prior literature largely overlooks the role of accounting quality and governance mechanisms in explaining market-level phenomena, we highlight an agenda for future accounting research.