A Fundamental Analysis of Korean Stock Returns
Korea has one of the largest stock markets in the world and is in the process of being opened to foreign investors. In an investigation of the relations between stock returns and fundamental variables in Korea, annual stock returns during the 1982-93 period were positively related to book-market, sa...
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Published in | Financial analysts journal Vol. 53; no. 3; pp. 75 - 80 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Charlottesville
The Association for Investment Management and Research
01.05.1997
Taylor & Francis Ltd |
Subjects | |
Online Access | Get full text |
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Summary: | Korea has one of the largest stock markets in the world and is in the process of being opened to foreign investors. In an investigation of the relations between stock returns and fundamental variables in Korea, annual stock returns during the 1982-93 period were positively related to book-market, sales-price, and debt-equity ratios, negatively related to firm size, and not significantly related to the earnings-price ratio or beta. These results add to the growing international evidence that value stocks outperform growth stocks over long periods. Also for Korean stocks, book-market and sales-price ratios are more efficient indicators of value than the earnings-price ratio, and the debt-equity ratio is a more reliable proxy for risk than beta. |
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Bibliography: | ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 0015-198X 1938-3312 |
DOI: | 10.2469/faj.v53.n3.2086 |