Yi co-authors award-winning paper at SWFA conference
School of Business Associate Professor Taihyeup Yi was a co-author of the paper “Risk Premium Relationships Between Large and Small Countries: Before, During and After the Great Recession" which won the FBD (Federation of Business Disciplines) Distinguished Paper Award at the 61st annual conference of the Southwestern Finance Association.
Dr. Yi, Temple University Professor Emeritus of Finance Kenneth J. Kopecky and Professor of Finance Sehyun Yoo, of Belmont University, use two empirical specifications to investigate the effect of the financial crisis on the risk-premium relationship between small countries and two large blocs, G7 and BRICS (Brazil, Russia, India, China and South Africa).
The authors found that the association of the risk premiums of small EU countries and G7 remains unchanged between the pre- and post-recession periods. Outside the EU, however, they find that the G7 coefficient declines between the pre- and post-recession periods. They also found a decline in the non-EU/BRICS relationship in the post-recession period. Thus, the financial crisis induced a significant realignment of risk premium relationships between non-EU countries and both BRICS and G7.
More than 300 papers covering all aspects of finance and financial education were submitted at the in-person conference, which was held March 2-6 in New Orleans. Panel discussions and tutorials were also held. Yi will present the same paper at the Eastern Finance Association annual meeting on April 7 in Washington, D.C.
The SWFA, a leading finance association in the U.S., brings together finance faculty, doctoral students and professionals throughout the world.