X-Message-Number: 9928
Date: Mon, 22 Jun 1998 15:49:07 -0700 (PDT)
From: Doug Skrecky <>
Subject: Korean stock returns 

Financial Analysts Journal May/June 1997: 75-80

"A Fundamental Analysis of Korean Stock Returns"

Abstract:

    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 positvely 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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