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Trading Patterns (trading + pattern)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	80%

Selected Abstracts

Institutional Trading and Price Momentum

INTERNATIONAL REVIEW OF FINANCE, Issue 1-2 2008
CHIH-HSIEN JERRY YU
ABSTRACT This paper aims to explore the effect of institutional trading on the two asymmetric phenomena found by Lee and Swaminathan: (1) asymmetric price momentum: price momentum is more pronounced among high-turnover stocks; (2) asymmetric return phenomenon: low-turnover stocks tend to outperform high-turnover stocks. Lee and Swaminathan use a ,momentum life cycle' to explain the asymmetric momentum effect while attributing the asymmetric return phenomenon to the analysts' overestimating (underestimating) the future profitability of high (low)-turnover firms. However, it essentially needs trading activity to induce both of the above asymmetric results. Because institutional investors exhibit a momentum trading pattern and the trading behavior of institutional investors may have a huge impact on the movement of stock prices, institutional trading may be one of the major driving forces leading to both of the above asymmetric patterns. The empirical results show that, first of all, after controlling for the turnover, the price momentum is still more pronounced among stocks with higher institutional ownership, while high-turnover stocks no longer exhibit a pronounced momentum effect after controlling for the institutional ownership. Furthermore, stocks with higher institutional ownership have better return performance in any of the turnover groups. While low-turnover stocks still outperform high-turnover stocks after controlling for the institutional ownership level, for some winner stocks this is no longer true. The results suggest that the asymmetric momentum effect is not induced by a stock's turnover, but rather it is driven by institutional trading. Turnover is only a proxy for institutional trading. That is, turnover per se has no economic significance in such a momentum phenomenon. [source]

Trading activity in stock index futures markets: The evidence of emerging markets

THE JOURNAL OF FUTURES MARKETS, Issue 10 2002
Yu Chuan Huang
This study investigates the trading activity of the Taiwan Futures Exchange (TAIFEX) and Singapore Exchange Derivatives Trading Limited (SGX-DT) Taiwan Stock Index Futures markets by analyzing the intraday patterns of volume and volatility. In addition, the market closure theory, which may explain such patterns, is examined. Overall, the trading pattern appears to be U-shaped for the TAIFEX futures and U+W-shaped for the SGX-DT. For the SGX-DT futures, volatility follows the same pattern as that of the number of price changes. For the TAIFEX futures, however, after the peak at the close of the spot market, the volatility in the TAIFEX futures drops consistently until the end of the day while volatility in the SGX-DT still reaches a smaller peak at the close of the futures market. In addition, a visual inspection of the intraday patterns of these two markets shows that the market closure theory can effectively explain the intraday patterns of these two markets. The empirical results support the market closure theory in that liquidity demand from traders rebalancing their portfolios before and after market closures creates larger volume and volatility at both the open and close. © 2002 Wiley Periodicals, Inc. Jrl Fut Mark 22:983,1003, 2002 [source]

European industry: the emerging market competitiveness challenge

ECONOMIC OUTLOOK, Issue 3 2006
Article first published online: 24 AUG 200
As the global economy has become increasingly open to 'free' trade, European industry - and, indeed, industry across the developed world - has found itself faced with growing competition from low cost, emerging market countries. How is it facing up to this stiff challenge? Newspaper headlines may suggest that effort has been focused on raising trade barriers to keep competition at bay. However, such actions are a thin veneer over the very real, structural changes that are rapidly taking place. This article, by Grant Colquhoun, examines the changing structure of the EU15's trading patterns and the differential impact across manufacturing sectors. It then analyses the steps industry is taking to cope with the competitiveness challenge. As well as attempting to squeeze costs, it is clear that industry in Europe is restructuring in order to focus on higher value added activities, where it typically has a competitive advantage over emerging markets. [source]

The Diverging Geographies of Social and Business Interaction Patterns: a Case Study of Rural South Australia

GEOGRAPHICAL RESEARCH, Issue 2 2000
P.J. Smailes
Major changes in personal mobility and in country town service provision have taken place in rural South Australia in the period 1968,69 to 1992,93. The later part of this period was one of major rural recession across Australia as a whole. The impact of this recession is considered by investigating changes in three different geographies of rural South Australians. These are their affective identification with place, their local social interaction and their commercial service consumption. There has been a shift of both commercial and social activity up through the hierarchy of settlement, but this is much more pronounced in the case of commercial activity. These differential rates of change are weakening the once mutually reinforcing links between community self-identification, social interaction and trading patterns. The full impact of the rural crisis commencing in 1982,83 on social and commercial spatial patterns is unlikely to have been achieved by 1992,93, and adjustment is likely to continue. [source]

Does Corporate Headquarters Location Matter for Stock Returns?

THE JOURNAL OF FINANCE, Issue 4 2006
CHRISTO PIRINSKY
ABSTRACT We document strong comovement in the stock returns of firms headquartered in the same geographic area. Moreover, stocks of companies that change their headquarters location experience a decrease in their comovement with stocks from the old location and an increase in their comovement with stocks from the new location. The local comovement of stock returns is not explained by economic fundamentals and is stronger for smaller firms with more individual investors and in regions with less financially sophisticated residents. We argue that price formation in equity markets has a significant geographic component linked to the trading patterns of local residents. [source]