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논문검색

Comprehensive Asset Pricing Tests in the Korean Stock Market

초록

영어

We examine the empirical performance in the Korean stock market of three new asset pricing factor models: the Stambaugh–Yuan (2017) mispricing factor model, the Daniel et al. (2020) three-factor model, and the Hou et al. (2021) q5-factor model. We find that all factors in these factor models have significantly positive risk premiums and are not explained by the Fama– French six-factor model. Compared to other prevalent models, the q5 model shows the highest maximum Sharpe ratio, mainly due to its profitability and expected growth factors. Further, the q5 model exhibits superior performance in explaining the returns of 97 anomaly portfolios in the Korean market.

목차

Abstract
1. Introduction
2. Data and Variables
3. Factor Construction
3.1 Methodology
3.2. Factor Return Distributions
4. Comparisons Between Factor Models
4.1 Spanning Test
4.2 Sharpe Ratio
5. Testing Anomaly Portfolios
5.1 Anomaly Portfolio Construction
5.2 Explanatory Power of Factor Models for Anomaly Returns
6. Conclusion
References
Table

저자정보

  • Jaewan Bae Dongguk Business School, Dongguk University, Republic of Korea
  • Jangkoo Kang College of Business, Korea Advanced Institute of Science and Technology, Republic of Korea
  • Jun Park College of Business, Korea Advanced Institute of Science and Technology, Republic of Korea

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