Dr. Taihyeup (Tai) Yi
Associate Professor Taihyeup (Tai) Yi co-wrote a published paper, “Uncovered Equity Parity: Theory and Evidence from the G-7.”
One of the important concepts in finance — the risk premium, as addressed in the paper — is covered in BUAD 320: Managerial Finance, BUAD 372: Financial Investments and BUAD 418: Corporate Finance II.
The paper appears in the June issue of the Journal of Academy of Business and Economics, Volume 25, Issue 2.
Dr. Yi and Professor of Finance Sehyun Yoo of Belmont University, present an intertemporal consumption model that includes foreign and domestic equity as well as domestic bonds. They derive the model’s first-order conditions and develop the uncovered equity parity (UEP) condition embedded in the model.
The authors examine the case of U.S. investors acquiring equity in the G-7 countries and provide results for both the entire sample period (January 1977 to December 2023) and two subperiods, pre- and post-euro. They find that the numerical estimates are consistent with the model’s first-order conditions, and thus the evidence does not contradict their model of UEP.
The Journal of Academy of Business and Economics (JABE) is an academic journal published by the International Academy of Business and Economics. The aim of JABE is to promote contemporary research that advances both theoretical and practical knowledge in the field of international business and economics.
All articles published in JABE undergo a rigorous double-blind peer review process by leading experts, with an acceptance rate of 18 percent.
The journal article can be accessed here:
