The relation between Korean stock prices(KOSPI) and domestic and international financial variables were empirically investigated for the sample period of Jan.1980~Jun.1999. The Korean stock prices were two: Korean won-denominated stock prices and the ...
The relation between Korean stock prices(KOSPI) and domestic and international financial variables were empirically investigated for the sample period of Jan.1980~Jun.1999. The Korean stock prices were two: Korean won-denominated stock prices and the U.S. dollar-denominated ones. The domestic and international financial variables were five: 1) won/dollar exchange rate, 2) yen/dollar exchange rate, 3) Korean 3-year corporate bond yield, 4) the U.S. Dow Jones stock price index, and 5) the Japanese Nikkei stock price index. The practical short- and long-term elasticities, measuring the effects of these domestic and international financial variables on KOSPI, were estimated and are reported in this paper.