Preloader

Tag: financial investments

WHICH INSTITUTIONAL INVESTOR TYPES ARE MOST INFORMED? EVIDENCE FROM REPORTED PORTFOLIO HOLDINGS

The funds management industry has grown rapidly over the past decades and plays a vital role in making financial market more efficient and to provide value to its investors. There are a wide variety of institutional investor types, all with different characteristics which potentially can result in a differing ability to predict future stock performance. Hedge funds

Read More

WHEN “NO” MEANS “NO”: THE INFORMATION CONTENT OF ASX PRICE QUERIES

When the price of a listed security changes by an abnormal amount, the ASX typically issues a price query (PQ). There are two possible explanations for an abnormal price change: 1. It was an anomalous movement, or 2. It was driven by an investor’s information advantage. Identifying the difference between these explanations is the primary

Read More

A LONG-TERM STUDY OF DEFENDANT FIRMS IN SHAREHOLDER CLASS ACTION LAWSUITS

In the US, shareholders can form a class action to sue a company under S10b-5 of the Securities Exchange Act for allegedly releasing misleading information, or for failing to disclose material information. The substantial cost of litigation, and its associated impact on shareholder value, has prompted debate over whether to reform access to the shareholder

Read More

EXCHANGE TRADING RULES, SURVEILLANCE AND INSIDER TRADING

Are rules and their enforcement effective at mitigating insider trading? A study shows that rules and surveillance together have the potential to mitigate the perpetration of market manipulation but also to exacerbate the profits from such manipulative activities. Insider trading can be facilitated by several forms of market manipulation that are not, strictly speaking, by

Read More

IS THERE AN OPTIMAL CLOSING PRICE MECHANISM?

Concerns regarding the prevalence of manipulation of closing prices have prompted substantial changes to the mechanisms used to close trading at stock exchanges around the world.  Nicholas Cordi USYD, CIFR / CMCRC Honours Scholarship Program 2014   Sean Foley USYD Keywords: Close price, Random Auction Ending, Manipulation   Closing prices are important for, among others, benchmarking

Read More

EQUITY ISSUES AND THE IMPACT OF LEAD MANAGER AFFILIATION ON BROKER MARKET SHARE AND TRADING VOLUME

Seasoned equity offerings (SEOs) are widely regarded as one of the most important capital structure events for listed companies. CMCRC researchers show brokers affiliated with SEO managers gain additional market share during SEOs as compared to unaffiliated brokers. This could be interpreted as contributing to compensation for management and underwriting services. Jimmy Liu PhD candidate,

Read More

WHAT DRIVES INVESTMENT-CASH FLOW SENSITIVITY AROUND THE WORLD?

Motivated by ongoing debates on investment-cash flow sensitivity (ICFS), its relation to firm-level financial constraints and its documented decline in the U.S., we investigate the determinants of cross-country and time-series variation in ICFS. Using firm-level data across 45 countries for the 1991–2010 period, we document a strong decline in ICFS for both developed and emerging

Read More