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논문검색

A structural VAR approach to the log-linear model : Evidence of regional stock markets

초록

영어

We develop a log-linear structural VAR model to decompose unexpected excess market returns into permanent and temporary cash-flow news, discount-rate news, and nonfundamental news. We make some important findings. First, contrary to recent evidence for the United States, we find that discount-rate news plays a more important role than cash-flow news in global stock markets. Second, non-fundamental factor (i.e., investor sentiment) also plays a role in developed regional stock markets outside the United States. Finally, risk premiums are significantly higher in a down market than in an up market.

목차

ABSTRACT
 1. Introduction
 2. Literature and financial practices
  2.1 Literature review
  2.2 Financial practices
 3. Data
 4. Methodology
  4.1 Return decomposition using log-linear VAR
  4.2 Return decomposition using log-linear SVAR
  4.3 Empirical models for tests
 5. Empirical evidence
  5.1 Variance decomposition
  5.2 Conditional relation between market beta and returns
  5.3 Correlations between various types of news
  5.4 Conditional relation between decomposed betas and returns
 6. Conclusions
 References

저자정보

  • Ming Wu College of Business Pusan National University
  • Kiyool Ohk College of Business Pusan National University
  • Kwangsoo Ko College of Business Pusan National University

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