SHERP

External Liberalization of the Korean Securities Market

Cited 0 time in webofscience Cited 0 time in scopus
Authors
Kim, YooMan; Kim, YoungSook
Issue Date
1991
Publisher
Seoul Journal of Economics
Citation
Seoul Journal of Economics 4 (No. 1 1991): 51-80
Keywords
risk-free ratekorean investorsKorea dependency
Abstract
The purpose of this paper is to provide arguments that there
exist traditional forms of benefits associated with forming global
portfolios. This study provides the empirical evidence that
these benefits are generated internally, i.e., strictly from the
traditional diversification of global portfolios alone. Moreover,
our results also establish that domestic interest rate, represented
by risk-free rate of return, is much higher than the
world level. Furthermore, price of risk associated with portfolio
investments in domestic securities has remained far below
the world level, implying that investment behaviors of indigenous
investors are much less risk-averse relative to their counterparts
in the rest of the world. Consequently, our results
show that we must reject the popular belief that domestic
securities are generally undervalued in comparison to foreign
securities, when we account for different risk levels entailed
between domestic and foreign portfolio investments.
ISSN
1225-0279
Language
English
URI
http://hdl.handle.net/10371/907
Files in This Item:
Appears in Collections:
College of Social Sciences (사회과학대학)Institute of Economics Research (경제연구소)Seoul Journal of EconomicsSeoul Journal of Economics vol.04(1) (Spring 1991)
  • mendeley

Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.

Browse