We investigate how corporate stock returns respond to geopolitical risk in the case of South Korea, which has experienced large and unpredictable geopolitical swings that originate from North Korea. To do so, a monthly index of geopolitical risk from North Korea (the GPRNK index) is constructed using automated keyword searches in South Korean media. The GPRNK index, designed to capture both upside and downside risk, corroborates that geopolitical risk sharply increases with the occurrence of nuclear tests, missile launches, or military confrontations, and decreases significantly around the times of summit meetings or multilateral talks. Using firm-level data, we find that heightened geopolitical risk reduces stock returns, and that the reductions in stock returns are greater especially for large firms, firms with a higher share of domestic investors, and for firms with a higher ratio of fixed assets to total assets. These results suggest that international portfolio diversification and investment irreversibility are important channels through which geopolitical risk affects stock returns.
We investigate how corporate stock returns respond to geopolitical risk in the case of South Korea, which has experienced large and unpredictable geopolitical swings that originate from North Korea. To do so, a monthly index of geopolitical risk from North Korea (the GPRNK index) is constructed using automated keyword searches in South Korean media. The GPRNK index, designed to capture both upside and downside risk, corroborates that geopolitical risk sharply increases with the occurrence of nuclear tests, missile launches, or military confrontations, and decreases significantly around the times of summit meetings or multilateral talks. Using firm-level data, we find that heightened geopolitical risk reduces stock returns, and that the reductions in stock returns are greater especially for large firms, firms with a higher share of domestic investors, and for firms with a higher ratio of fixed assets to total assets. These results suggest that international portfolio diversification and investment irreversibility are important channels through which geopolitical risk affects stock returns.
This reflexive, transcultural dialogue scholarship integrates autobiography alongside an in-depth, critical analysis of Eastern and Western philosophy. Moon revisits his cultural heritage providing rich narratives that debunk a universalized, Eurocentric approach to truth in the contemporary curriculum and social discourse. As an exploration of multiple versions of knowing and identities, The Flows of Transnationalism allows readers to extend and invent their own approaches to examining the fluidity of identities. Moon promotes diverse perspectives within curriculum studies by disrupting the self-other and cultural sameness-difference dichotomy. Amid the urgent need of developing anti-racist pedagogy, this book provides an innovative way to studying identities in a transnational context. This thought-provoking book on transculturalism, cultural identities, and curriculum is intended to benefit educators, university faculty, and interested members of the public. It is written for those who have the desire to learn and apply diverse approaches for engaging with cultural identities through lived experience and its sociopolitical interpretation.
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