UM
Residential Collegefalse
Status已發表Published
Round-number biases and informed trading in global markets
Chen,Tao
2018-11-01
Source PublicationJournal of Business Research
ABS Journal Level3
ISSN01482963
Volume92Pages:105-117
Abstract

This paper investigates whether informed trading matters to round-number biases. We document the global presence of round-number biases by showing excessive buying (selling) pressure immediately below (above) a rounded threshold. Additionally, we demonstrate that trades surrounding 0-ending prices are likely to be initiated by informed traders who tend to buy (sell) at 9-ending (1-ending) prices. Moreover, small-sized (medium-sized) trades with 1-ending or 9-ending prices are revealed to be more informative and conducted persistently. Collectively, these findings seem to suggest that informed investors strategically engage in stealth trading by leveraging round-number biases of liquidity traders, which indirectly drives this anomaly in global markets.

KeywordBehavioral Finance Global Market Informed Trading Round-number Bias
DOI10.1016/j.jbusres.2018.07.027
URLView the original
Language英語English
WOS Research AreaBusiness & Economics
WOS SubjectBusiness
WOS IDWOS:000446285000010
Scopus ID2-s2.0-85050117687
Fulltext Access
Citation statistics
Document TypeJournal article
CollectionUniversity of Macau
AffiliationDepartment of Finance and Business Economics,Faculty of Business Administration,University of Macau,,Macao
First Author AffilicationFaculty of Business Administration
Recommended Citation
GB/T 7714
Chen,Tao. Round-number biases and informed trading in global markets[J]. Journal of Business Research, 2018, 92, 105-117.
APA Chen,Tao.(2018). Round-number biases and informed trading in global markets. Journal of Business Research, 92, 105-117.
MLA Chen,Tao."Round-number biases and informed trading in global markets".Journal of Business Research 92(2018):105-117.
Files in This Item:
There are no files associated with this item.
Related Services
Recommend this item
Bookmark
Usage statistics
Export to Endnote
Google Scholar
Similar articles in Google Scholar
[Chen,Tao]'s Articles
Baidu academic
Similar articles in Baidu academic
[Chen,Tao]'s Articles
Bing Scholar
Similar articles in Bing Scholar
[Chen,Tao]'s Articles
Terms of Use
No data!
Social Bookmark/Share
All comments (0)
No comment.
 

Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.