Table 1.

Summary statistics of stock market returns and economic variables

KOSPI200 index returnsKOR
growth of industrial production index
KOR
growth of coincident economic activity index
S&P500 index returnsUS growth of industrial production indexUS growth of coincident economic activity index
Mean (%)0.59940.2469−0.00700.50700.07050.1845
Median (%)0.72080.21140.00001.05270.15650.2267
Max0.12850.04960.01100.10230.01510.0051
Min−0.2352−0.0455−0.0121−0.1856−0.0443−0.0054
SD0.05140.01380.00280.03900.00730.0018
Skewness−0.66840.0779−0.2207−1.0420−2.1001−2.0522
Kurtosis5.49864.61205.98276.293712.54167.5751
Jarque-Bera Statistic57.5494***18.7968***65.1541***108.8728***778.8994***270.7439***
ADF test−12.5932***−17.5178***−8.6327***−10.9864***−10.0142***−2.5666**

Notes:

The table reports summary statistics of monthly stock market returns and economic variables of Korea and the USA. KOSPI200 index returns and S&P500 index returns are log change in stock market index of Korea and the USA, respectively. Growth of industrial production index is log change in seasonally adjusted industrial production index. Growth of coincident economic activity index is log change in seasonally adjusted coincident economic activity index. Jarque-Bera Statistic verifies nonnormality and ADF (Augmented Dickey-Fuller) test is a t-statistic on β in the regression of each variable xt, xt = α + βxt-1 + δ1Δxt-1 +… + δp-1Δxt-p+1 + εt. Lag order p is selected by using Ng and Perron (1995)’s procedure. ** and *** represent significance at the 5 and 1% levels, respectively. All variables are monthlized. The sample period covers February 2004 to May 2018

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