This study suggests ways to increase information efficiency by modifying institutions that cause inefficiency in the Korean capital market.
Information efficiency is achieved when all relevant information that is available in the market is reflected immediately in price, and market prices indicate inherent value. Such s market is efficient in terms of distribution and operation. It is necessary to repair the institutions that are causing inefficiency, as analysis shows that information efficiency is not being achieved in the Korean stock market. To increase information efficiency in the capital market, institutional improvements should be made as follows:
First, business accounting and external audit systems, as well as supervision and regulation by the government, need to be repaired, and cooperative relationships should be maintained among institutions so as to secure and maintain public confidence in accounting information. Second, a corporate disclosure system is required to create fair market competition for investors, and help them make accurate decisions for investment. Third, insider trading regulations should be reinforced to prevent monopolies on important information regarding corporations or the economy that may affect securities prices, and ensure such information is provided to every investor equally and fairly. Fourth, it is necessary to facilitate policies that will allow credit information systems to be established as soon as possible.
Investors will be protected and make accurate investment decisions, thereby increasing efficiency in the capital market, if corporate internal information is delivered to every investor in a quick, accurate, and equal manner.
자본시장의 정보효율성 제고방안(Ways to improve information efficiency in the capital market)
서울 : 한국개발연구원
|Series Title; No||정책연구시리즈 / 94-15|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < IT|
|Holding||KDI; KDI School|