Publications
Detailed Information
External Liberalization of the Korean Securities Market
Cited 0 time in
Web of Science
Cited 0 time in Scopus
- Authors
- Issue Date
- 1991-01
- Citation
- Seoul Journal of Economics, Vol.4 No.1, pp. 51-80
- Keywords
- risk-free rate ; korean investors ; Korea 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
- Files in This Item:
Item View & Download Count
Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.