Non-normality and risk in developing Asian markets

This paper examines whether additional risk factors such as the variance, skewness, and coskewness of returns offer an appropriate explanation of company returns in less developed capital markets. Arguments for considering some additional factors in pricing models to better deal with such situations...

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Main Authors: Alles, Lakshman, Murray, L.
Format: Journal Article
Published: World Scientific Publishing Co. Pte. Ltd. 2010
Online Access:http://hdl.handle.net/20.500.11937/42666
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author Alles, Lakshman
Murray, L.
author_facet Alles, Lakshman
Murray, L.
author_sort Alles, Lakshman
building Curtin Institutional Repository
collection Online Access
description This paper examines whether additional risk factors such as the variance, skewness, and coskewness of returns offer an appropriate explanation of company returns in less developed capital markets. Arguments for considering some additional factors in pricing models to better deal with such situations are presented. Using individual company returns from a range of developing Asian capital markets, empirical tests examine the importance of these extra risk factors. Results indicate that both individually and when in combination, variance and coskewness are significantly related to returns in these markets. Skewness is less consistently important. Robustness tests confirm that these measures tend not to capture size or book to market factors.
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institution Curtin University Malaysia
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publishDate 2010
publisher World Scientific Publishing Co. Pte. Ltd.
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spelling curtin-20.500.11937-426662017-09-13T14:25:26Z Non-normality and risk in developing Asian markets Alles, Lakshman Murray, L. This paper examines whether additional risk factors such as the variance, skewness, and coskewness of returns offer an appropriate explanation of company returns in less developed capital markets. Arguments for considering some additional factors in pricing models to better deal with such situations are presented. Using individual company returns from a range of developing Asian capital markets, empirical tests examine the importance of these extra risk factors. Results indicate that both individually and when in combination, variance and coskewness are significantly related to returns in these markets. Skewness is less consistently important. Robustness tests confirm that these measures tend not to capture size or book to market factors. 2010 Journal Article http://hdl.handle.net/20.500.11937/42666 10.1142/S0219091510002086 World Scientific Publishing Co. Pte. Ltd. restricted
spellingShingle Alles, Lakshman
Murray, L.
Non-normality and risk in developing Asian markets
title Non-normality and risk in developing Asian markets
title_full Non-normality and risk in developing Asian markets
title_fullStr Non-normality and risk in developing Asian markets
title_full_unstemmed Non-normality and risk in developing Asian markets
title_short Non-normality and risk in developing Asian markets
title_sort non-normality and risk in developing asian markets
url http://hdl.handle.net/20.500.11937/42666