Flow Of Market Information Research Articles

The 'Ostrich Effect' and the Relationship between the Liquidity and the Yields of Financial Assets

This paper documents a puzzling observed anomaly in the relative value of a liquid and comparable illiquid asset. During a prolonged period of time Government T-bills provided a higher Yield to Maturity than an equally risky illiquid asset (bank deposits). This cannot be attributed to taxes, risk or transaction costs. We relate our finding to the literature on behavioral finance and, more specifically,to the Myopic Loss Aversion literature (MLA) that investigates the impact of the frequency of investment information flow on investment decisions. We suggest that the observed puzzle is due to the positive correlation between liquidity and the flow of market information. We use the term Ostrich Effect, to describe investor behavior, since ostriches are believed to treat apparently risky situations by pretending they do not exist. As predicted by the Ostrich Effect, we find that the difference between the return on the liquid asset relative to the illiquid asset is higher in periods of greater uncertainty.

Industry application of marbling genetics: a brief review

Improved marbling performance has been recognised for many years as an important objective for the high value export sector of the Australian beef industry. Over the last decade there have been several developments that have provided breeders with substantially better information on which to base breeding decisions aimed at improved marbling performance. These include the application of real-time ultrasound scanning for intramuscular fat percentage (IMF%); the derivation of genetic parameters involving IMF%; the incorporation of IMF% in multi-trait genetic evaluation; and, the industry adoption of selection index technology to assist in optimal multi-trait selection including marbling performance.It is argued that a major constraint to the genetic improvement in beef palatability traits, including marbling performance, has been the inadequate communication of effective market signals and poor information flow through the beef supply chain. This situation is unlikely to change unless the industry achieves a greater degree of vertical co-ordination and improved linkage across the supply chain from the producer to the consumer. There is a need for the implementation of genuine value based marketing systems that provide an appropriate financial incentive for seedstock and commercial beef producers to adopt breeding and management strategies that emphasise the improvement of beef palatability and marbling. The application of gene marker technology will provide future opportunities, as well as additional challenges, in the quest for achieving improved marbling performance.

International Cross-Listing: The Effects of Market Fragmentation and Information Flows

We investigate the effects of market fragmentation and information flows in the case of stocks cross-listed on markets in Central Europe and London. First, we test for co-movement, interaction and error correction behavior between the local and London markets. Our results suggest that strong interactions exist between these markets, with the London market being slightly more important than the local one. The two prices of cross-listed stocks are cointegrated and pricing errors are corrected over a few days. These interactions suggest partial fragmentation. Second, we extend an earlier model to examine the impact of foreign listing on the variance of local returns. The focus of previous studies has concentrated almost exclusively on the return of cross-listed securities. The variance of returns has remained mostly unnoticed, even though some studies noted an increase of variance after the cross-listing. In our model, we introduce a new factor that influences return variance: tighter interaction with foreign markets as a consequence of cross-listing. Estimation results lend support to our model.

The market for information—evidence from finance directors, analysts and fund managers

The theoretical distinction between information efficiency and fundamental efficiency suggests an important question for accounting research, which is whether (and to what extent) there exists an equilibrium mechanism whereby fund managers investment decisions can be fully informed. This question is approached in this paper by means of developing a grounded theory of the market for information. The theory is derived from a (mostly interview-based) empirical analysis of the economic incentives of finance directors, analysts and fund managers with respect to stock market information flows. The evidence suggests a two-part theory. First, it is argued that ‘raw’ data flowing directly from companies is of considerably greater importance to fund managers than ‘processed’ data generated by analysts. Second, analysts are nevertheless argued to play an important role in the market for information, as both mechanisms of information efficiency and as providers of benchmarks for consensus valuation. This theory implies that the research literature has paid insufficient attention to the role of accounting information in direct communication between companies and fund managers and, related to this, that the role of analysts in share price determination has been overstated and only superficially understood.

Structure, Cooperation, and the Flow of Market Information

This article explores the potential impact of individual consumer decisions to transmit or withhold word-of-mouth information on the flow of information in a market. Information flow is examined in networks composed of graphs and nodes, where graphs represent channels that foster information flow and nodes represent sentient decision makers who can potentially impede or foster information flow. We assert that actors in embedded markets first judge the moral hazards imposed by the information they consider for transmission and the social context of transmission, and then moderate their decisions to transmit the information in light of these judgements. We analyze this process using a modified version of Marshall Sahlins's social exchange theory, examine the plausibility of this analysis using two laboratory experiments, and explore the consequences of this behavior at the aggregate level using a computer simulation. Our view highlights the importance of the interplay of individuals and their social context for understanding word-of-mouth processes.

COCONUT MARKETING: ISSUES FOR A THREATENED INDUSTRY

The coconut industry is under pressure from low world oil‑seed prices and the increased availability of palm kernels. This paper reviews market conditions in the lauric sub‑sector, describes the marketing channels for copra and coconut oil, and sets out details of significant issues for the future. It concludes that the industry must take urgent steps to (a) improve the flow of market information, (b) develop cost saving means of production which lead to a range of items, and (c) investigate new markets for non­-traditional products.

Adaptation to Uncertainty and Small Numbers Exchange: The New England Fresh Fish Market

Relatively inaccurate and slow dissemination of market information and location and ownership factors cause trading to take place under conditions of uncertainty and small numbers. The inefficiencies and inequities which might otherwise result in each individual transaction are mitigated by a pattern of very personal, long-term, bilateral agreements. These agreements deal with the efficiency and equity problems through a system of reciprocation over time. Nevertheless, the collective effect of the agreements, under certain common conditions, is to suppress further the flow of market information and seriously to impair product quality incentives and other measures of market performance.

Industry Variations in Geographic Labor Mobility Patterns

Through the use of data derived from a one percent sample of Social Security Administration records, patterns of interregional mobility in the period 1957 to 1960 are explored for male workers by industry of major job in 1957. The data are available for ten broad industrial categories and they are used to explore the extent to which workers in different industries are responsive to the factors of distance and earnings levels when they move between the nine broad census regions. The basic conclusions are: (1) that workers respond positively to earnings and negatively to distance and (2) that the strength of the distance variable is indicative of its measuring more than just the pure costs of interregional movement. It is suggested that the latter may reflect the presence of barriers to the flow of labor market information between regions.