Journal ArticleDOI
The Impact of Derivative Trading on the Liquidity of Stocks
M S Narasimhan,Shalu Kalra +1 more
- Vol. 39, Iss: 3, pp 51-66
TLDR
In this article, the authors proposed that liquidity is an important factor for smooth trading for all assets including equities traded in the stock markets and that stock exchanges enable buyers and sellers to come together for transaction and in...Abstract:
Liquidity is an important factor for smooth trading for all assets including equities traded in the stock markets. Stock exchanges enable buyers and sellers to come together for transaction and in ...read more
Citations
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Journal ArticleDOI
Estimating the cost of equity for the regulated energy and infrastructure sectors in India
TL;DR: In this paper , the authors apply three asset pricing models (CAPM, Fama-French three and five-factor models) to estimate the cost of equity for the Indian energy and infrastructure sectors.
Journal ArticleDOI
The Impact of Futures Contracts On Risk and Returns of the VN30 Index in Vietnam
TL;DR: In this article, the effects of derivatives of the Vietnam Ho Chi Minh (VN) Stock Index and VN30 futures contract for the underlying stock markets were analyzed using the Exponential Generalized Autoregressive Conditional Heteroscedastic (EGARCH) model.
Journal ArticleDOI
Derivatives use and the business lending efficiency of African banks
TL;DR: The authors studied a panel of 147 banks from 14 African countries between 2011 and 2017, using two competing non-parametric and parametric approaches for efficiency analysis and found that despite conflicting bank efficiency interpretations, both investigations corroborate the existence of widespread inefficiency of markets in Africa, which is likely strengthened by harmful fragmentation in the continent's financial/capital markets, market illiquidity, a lack of transparency, and informational inefficiency.
References
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Journal ArticleDOI
The effects of stock index futures trading on stock index volatility: An analysis of the asymmetric response of volatility to news
TL;DR: This paper showed that noise trading is an important contributor to asymmetric effects in the response of volatility to news, and that futures trading improves market dynamics in processing news by transferring noise trading from spot to futures markets.
Journal ArticleDOI
The effects of option listing on the underlying stocks' return processes
Aswath Damodaran,Joseph Lim +1 more
TL;DR: In this article, the effects of option listing on the returns processes of the underlying securities are examined by looking at a sample of 200 firms which had options listed on them on the CBOE and the AMEX between 1973 and 1983.
Journal ArticleDOI
Equity Market Liberalization in Emerging Markets
TL;DR: In this article, the authors provide a synthesis of the current methods and show the impact of market liberalization on the real sector, including financial and real sectors, in emerging equity markets.
Book ChapterDOI
Does Futures Trading Reduce Price Fluctuations in the Cash Markets
TL;DR: The theoretical literature available on the subject of futures trading and price stability is rather scanty and inconclusive as mentioned in this paper, and most of the evidence has been gathered on onion and potato prices, which suggests that the seasonal price range is lower with a futures market because of speculative support at harvest time, sharp adjustments at the end of a marketing season are diminished under futures trading because they have been better anticipated.
Journal ArticleDOI
Options Trading and the Bid-Ask Spread of the Underlying Stocks
TL;DR: In this paper, the authors identify a trade-off between the benefits of increased liquidity and the cost of informational externalities and show that options listing significantly affects the spreads on the underlying stock.
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