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Stock exchange

About: Stock exchange is a research topic. Over the lifetime, 39566 publications have been published within this topic receiving 612044 citations.


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Journal ArticleDOI
TL;DR: In this paper, the authors proposed a market-wide risk management system that would deal with computer-generated chaos in real time, and their regulators should address this."Make or take" pricing, the charging of access fees to market orders that take" liquidity and paying rebates to limit orders that make" liquidity, causes distortions that should be corrected.
Abstract: The US equity market has changed dramatically in recent years. Increasing automation and the entry of new trading platforms have resulted in intense competition among trading platforms.Despite these changes, traders still face the same challenges as before. They seek to minimize the total cost of trading, including commissions, bid/ask spreads, and market impact. New technologies allow traders to implement traditional strategies more effectively. For example, dark pools and indications of interest are just an updated form of tactics that NYSE (New York Stock Exchange) floor traders used to search for counterparties while minimizing the exposure of their clients' trading interest to prevent front running.Virtually every measurable dimension of US equity market quality has improved. Execution speeds and retail commissions have fallen. Bid-ask spreads have fallen and remain low, although they spiked upward along with volatility during the recent financial crisis. Market depth has increased. Studies of institutional transactions costs find US costs among the lowest in the world. Unlike during the Crash of 1987, the US equity market mechanism handled the increase in trading volume and volatility without disruption. However, our markets lack a market-wide risk management system that would deal with computer-generated chaos in real time, and our regulators should address this."Make or take" pricing, the charging of access fees to market orders that "take" liquidity and paying rebates to limit orders that "make" liquidity, causes distortions that should be corrected. Such charges are not reflected in the quotations used for the measurement of best execution. Direct access by nonbrokers to trading platforms requires appropriate risk management. Front running orders in correlated securities should be banned.

167 citations

ReportDOI
TL;DR: This article found no relationship between repurchases and restricted stock, an alternative form of stock-based compensation that, unlike stock options, is not diluted by dividend payments, and found that firms that rely heavily on stock-option-based compensations are significantly more likely to repurchase their stock than firms which rely less heavily on the stock options to compensate their top executives.
Abstract: A longstanding puzzle in corporate finance is the rise of stock repurchases as a means of distributing earnings to shareholders. While most attempts to explain repurchase behavior focus on the incentives of firms, this paper focuses on the incentives of the agents who run firms, as determined by those agents' compensation packages. The increased use of repurchases coincided with an increasing reliance on stock options to compensate top managers, and stock options encourage managers to choose repurchases over conventional dividend payments because repurchases, unlike dividends, do not dilute the per-share value of the stock. Consistent with the stock option hypothesis, I find that firms which rely heavily on stock-option-based compensation are significantly more likely to repurchase their stock than firms which rely less heavily on stock options to compensate their top executives. I find no such relationship between repurchases and restricted stock, an alternative form of stock-based compensation that, unlike stock options, is not diluted by dividend payments. These findings have implications for the study of other puzzles concerning firms' payout behavior, and for the study of the effects of executive compensation packages on managerial incentives.

167 citations

Journal ArticleDOI
TL;DR: In this paper, the authors compared the extent of corporate disclosure before and after the creation of the Saudi Organization of Certified Public Accountants (SOCPA) in Saudi Arabia, and showed that compliance with the mandatory requirements in all industries covered by the study, with the exception of the electricity sector.

167 citations

Journal ArticleDOI
TL;DR: In this article, the relationship between financial leverage and firm performance measured by the return on equity (ROE) is negative but insignificant but negative and significant relationship exists with Tobin's Q. The results show that financial leverage measured by short term debt to total assets (STDTA) and total debt-to-total assets (TDTA) has a significantly negative relationship with the firm performance.
Abstract: Purpose: The purpose of this study is to find the relationship of capital structure decision with the performance of the firms in the developing market economies like Pakistan. Methodology: Pooled Ordinary Least Square regression was applied to 36 engineering sector firms in Pakistani market listed on the Karachi Stock Exchange (KSE) during the period 2003-2009. Findings: The results show that financial leverage measured by short term debt to total assets (STDTA) and total debt to total assets (TDTA) has a significantly negative relationship with the firm performance measured by Return on Assets (ROA), Gross Profit Margin (GM) and Tobin’s Q. The relationship between financial leverage and firm performance measured by the return on equity (ROE) is negative but insignificant. Asset size has an insignificant relationship with the firm performance measured by ROA and GM but negative and significant relationship exists with Tobin’s Q. Firms in the engineering sector of Pakistan are largely dependent on short term debt but debts are attached with strong covenants which affect the performance of the firm. Originality/Value: This is first paper to study an individual sector like engineering industry in Pakistan on the mentioned topic.

167 citations

Journal ArticleDOI
Jeff Bacidore1
TL;DR: In this paper, the authors address the "decimalization" debate, i.e., whether trading on cent ticks rather than fractions of a dollar reduces trading costs without diminishing liquidity.

167 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20232,414
20225,944
20211,840
20202,645
20192,535
20182,413