An equity mutual fund is a financial intermediary that collects funds from various investors and ... more An equity mutual fund is a financial intermediary that collects funds from various investors and invests in equities and other assets. It has the following advantages or functions: record keeping and administration, diversification and divisibility, professional management, and low transaction costs. Compared to the rapid growth of the global equity fund markets over the past decade, the Korean market has shrunk significantly. The main cause is the decline in the reliability of equity funds. This study examines the current status of the global and Korean fund markets and their relationships with private pension markets. Based on the findings, various issues in the Korean equity fund market are identified, and various possible solutions concerning asset management companies, sales companies, and institutional regulations are suggested. If the equity fund market gains the investors' trust, it will reduce the direct investment of stocks by individuals, benefit the private pension markets, and contribute to the development of the Korean capital market.
This paper investigates the time-varying behavior of the bid -ask spread components of Nikkei 225... more This paper investigates the time-varying behavior of the bid -ask spread components of Nikkei 225 index futures contract on the Singapore International Monetary Exchange (SIMEX). Using the Huang and Stoll [Journal of Financial Economics 41 (1996) 313] trade indicator model, intraday transaction data is analyzed for the period 1993 to 1996. The empirical results support the presence of a large inventory holding cost (63.39%) and a smaller adverse information cost (3.70%). Timevarying analyses show an L-shaped pattern of the adverse information costs and reversed U-shaped pattern of the inventory holding costs during a day. Moreover, for the last 15 min when only the SIMEX is open (Tokyo Stock Exchange (TSE)-nontrading period), there is a relatively large portion of adverse information cost (7.79%).
An equity mutual fund is a financial intermediary that collects funds from various investors and ... more An equity mutual fund is a financial intermediary that collects funds from various investors and invests in equities and other assets. It has the following advantages or functions: record keeping and administration, diversification and divisibility, professional management, and low transaction costs. Compared to the rapid growth of the global equity fund markets over the past decade, the Korean market has shrunk significantly. The main cause is the decline in the reliability of equity funds. This study examines the current status of the global and Korean fund markets and their relationships with private pension markets. Based on the findings, various issues in the Korean equity fund market are identified, and various possible solutions concerning asset management companies, sales companies, and institutional regulations are suggested. If the equity fund market gains the investors' trust, it will reduce the direct investment of stocks by individuals, benefit the private pension markets, and contribute to the development of the Korean capital market.
This paper investigates the time-varying behavior of the bid -ask spread components of Nikkei 225... more This paper investigates the time-varying behavior of the bid -ask spread components of Nikkei 225 index futures contract on the Singapore International Monetary Exchange (SIMEX). Using the Huang and Stoll [Journal of Financial Economics 41 (1996) 313] trade indicator model, intraday transaction data is analyzed for the period 1993 to 1996. The empirical results support the presence of a large inventory holding cost (63.39%) and a smaller adverse information cost (3.70%). Timevarying analyses show an L-shaped pattern of the adverse information costs and reversed U-shaped pattern of the inventory holding costs during a day. Moreover, for the last 15 min when only the SIMEX is open (Tokyo Stock Exchange (TSE)-nontrading period), there is a relatively large portion of adverse information cost (7.79%).
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Papers by Kwangsoo Ko