Title: Critical factors for determining market price of stocks traded on the Korean Stock Exchanges (KSE)
Authors: Kee S. Kim
Addresses: Finance Department, Missouri State University, Springfield, MO 65897, USA
Abstract: Many brokers and investors in Korea tend to believe that stock prices in Korea are unpredictable because they are determined largely by socio-political factors instead of fundamental factors of the firm. This research intends to examine the price behaviour of stocks trading on the Korean Stock Exchange (KSE) and to find critical factors that determine the market prices. Several accounting and non-accounting variables that represent risk and return of the firm are used as input variables to the model. In this paper, the Adaptive Learning Network (ALN) approach, an artificial intelligence technique, is used to examine the behaviour of stock prices. The result indicates that stock prices on the KSE are largely determined by the variables that represent risk and return of the firm.
Keywords: Korean stock exchange; KSE; artificial intelligence; market price; Korea; intelligent systems; critical factors; adaptive learning networks; stock prices; risk; return.
International Journal of Intelligent Systems Technologies and Applications, 2007 Vol.2 No.1, pp.32 - 40
Published online: 02 Dec 2006 *Full-text access for editors Access for subscribers Purchase this article Comment on this article