Table 5

The effect of the NPS's NIF on the returns (Ⅱ)

T3510152030
VariableCoefficient (t-value)Coefficient (t-value)Coefficient (t-value)Coefficient (t-value)Coefficient (t-value)Coefficient (t-value)
Panel A. Return of KOSPI200 futures
NIF[t–T, t–1]0.0480 (1.11)0.1114* (1.92)0.1960** (2.54)0.2236** (2.51)0.1910* (1.83*)0.2025 (1.61)
FutCAR[t–T, t–1]34.9250*** (36.02)20.4453*** (24.73)12.0980*** (17.72)8.6297*** (15.13)6.8428*** (13.52)4.6862*** (10.37)
FutVol[t–T, t–1]5.5260*** (4.97)5.7033*** (6.27)6.0412*** (8.50)5.6141*** (9.15)4.6206*** (8.20)4.5267*** (7.70)
StkWon[t–T, t–1]−0.1101 (−1.51)−0.2041** (−2.43)−0.2582*** (−2.78)−0.2726*** (−2.80)−0.2376** (−2.34)−0.2932*** (−2.88)
FutWon[t–T, t–1]−0.0137 (−0.29)−0.0244 (−0.46)−0.0779 (−1.38)−0.1011* (−1.74)−0.0964 (−1.63)−0.0548 (−0.93)
Adjusted R20.34780.20290.11720.09310.07500.0475
Panel B. Basis in the KOSPI200 futures market
NIF[t–T, t–1]−0.0553 (−1.56)−0.1392*** (−3.11)−0.2529*** (−4.25)−0.2344*** (−3.39)−0.2830*** (−3.52)−0.2231** (−2.29)
Basis[t–T, t–1]0.4832*** (27.27)0.3764*** (20.30)0.1370*** (7.11)0.1214*** (5.96)0.1319*** (6.54)0.0965*** (4.73)
FutVol[t–T, t–1]−6.0343*** (−6.45)−6.6395*** (−9.22)−7.6900*** (−14.61)−5.7638*** (−12.37)−4.7961*** (−11.20)−5.1670*** (−12.16)
StkWon[t–T, t–1]−0.0602 (−1.01)−0.0649 (−1.00)−0.0412 (−0.57)−0.1740** (−2.30)−0.1953** (−2.51)−0.1864** (−2.37)
FutWon[t–T, t–1]0.1744*** (4.45)0.2327*** (5.59)0.3557*** (8.14)0.3995*** (8.70)0.3894*** (8.41)0.4121*** (8.87)
Adjusted R20.28260.21930.13500.11680.11270.1032
Panel C. Return of KOSPI200 spot index
NIF[t–T, t–1]0.0464 (1.12)0.1086* (1.95)0.1745** (2.35)0.1979** (2.30)0.1714* (1.70)0.1757 (1.45)
IndCAR[t–T, t–1]34.1086*** (36.08)19.9081*** (24.51)11.5486*** (17.14)8.2028*** (14.50)6.4085*** (12.79)4.1926*** (9.40)
FutVol[t–T, t–1]3.8751*** (3.63)4.2936*** (4.91)4.7085*** (6.88)4.2562*** (7.17)3.2692*** (6.00)3.0631*** (5.40)
StkWon[t–T, t–1]−0.0803 (−1.15)−0.1634** (−2.02)−0.1912** (−2.14)−0.2104** (−2.23)−0.1667* (−1.70)−0.2126** (−2.16)
FutWon[t–T, t–1]0.0199 (0.44)0.0138 (0.27)−0.0471 (−0.87)−0.0577 (−1.03)−0.0515 (−0.90)−0.0116 (−0.20)
Adjusted R20.34740.19810.10840.08220.06380.0358

Note(s): This table shows the results from regressing the return of KOSPI200 futures, the basis in the KOSPI200 futures market and the return of KOSPI200 on day t on the NPS's net investment flow (NIF) in KOSPI200 futures for the period from day t-T to day t–1 represented as NIF[t–T, t–1]. FutCAR[t–T, t–1] is the cumulative abnormal return of KOSPI200 futures. FutVol[t–T, t–1] is the average daily volatility of KOSPI200 futures for the period from day t-T to t–1. StkWon[t–T, t–1] is the average daily trading amount in the KOSPI market for the period from day t-T to day t–1 and FutWon[t–T, t–1] is the average daily trading amount of KOSPI200 futures contracts for the period from day t-T to day t–1. Basis[t–T, t–1] is the average daily basis in the KOSPI200 futures market for the period from t-T to t–1. IndCAR[t–T, t–1] is the cumulative abnormal return of KOSPI200 for the period from t-T to t–1. *, ** and *** indicate the significance at the levels of 10%, 5% and 1%, respectively

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