Increase In Trading Volume Research Articles

Expiration day effects on European trading volumes

This study investigates the effect of periodic events, such as the stock index futures and options expiration days and the Morgan Stanley Capital International (MSCI) quarterly index reviews, on the trading volume in the pan-European equity markets. The motivation of this study stems from anecdotal evidence of increased trading volume in the equity markets during the run-up to the index options and futures expiration days and MSCI rebalances. This study investigates this phenomenon in more detail and analyses the trading volumes of seven European stock indices and the MSCI International Pan-Euro Price Index. The analysis features a multi-step ahead volume forecast, which is important for practitioners in order to plan multi-day trades while looking to minimise the market impact. The results confirm higher trading activity on the futures and options expiration days, as well as on the MSCI rebalance day. We report a clear futures and options expiration day effect, which accounts for the Friday effect in terms of larger trading volumes. The MSCI rebalance trading volume is significantly different from the volume of the adjacent months with no MSCI reviews, but they cannot explain the end-of-month effect entirely.

The Study on the Correlation between Wholesale Price and Trading Volume in Taiwan Milkfish Market

The unit root test, vector autoregressive (VAR) model, Granger causality test, and impulse response function are applied in this study to explore the correlation between wholesale price and trading volume of milkfish in Taiwan milkfish market over the period 2001- 2017. The empirical results show that both the wholesale price and the trading volume of the Taiwan milkfish market are stationary series, and there is a bidirectional causal relationship between the two. That is, the price and the volume of the milkfish affect each other, i.e., there is a short-term and interactive relationship between the wholesale price and the trading volume. When the wholesale price rises (falls), there would be a negative (positive) relationship in the first and second period, and a positive (negative) response in the seventh period. If the trading volume increases (decreases) in the current period, then the price would experience decline (increase) in the first period.

A Study on the Development of Logistics and Supply Chain Professionals in Australia

세계적으로 물류의 중요성이 증대되고 있으며, 물류산업의 발전과 더불어 학생과 근로자의 수가 증가하였다. 세계적인 물동량의 증가와 물류수요의 증대로 인해 많은 사람들이 물류에 종사하게 되었고, 물류산업은 지속적으로 성장하고 있다. 본 논문은 호주의 물류에 대한 현재와 미래의 인력확보와 산업발전에 따른 대응 전략을 연구하였다. 호주의 물류산업과 연관된 경제, 노동력 및 무역에 관한 거시적인 배경 에서부터 공급망에 대한 인식과 물류산업의 장래 고용전망을 알아보고 이에 대응하여 공급망관리에서 요구하는 능력과 기술에 대해 연구하 였다. 호주는 2017년 세계에서 13번째로 큰 경제 대국이며 호주의 노동력은 세계에서 가장 교육받고 다문화적이고 다국어를 구사하는 나라 중하나이다. 호주의 근로자는 우수한 교육 시스템, 우수한 과학 연구 기관 및 전문 교육 서비스의 가용성으로 인해 고도로 숙련되어 있다. 이들을 대상으로 물류에 대한 호감도를 조사한 자료에 의하면 학생들이 다른 직업에 비해 섹시하지 않다고 생각하고 있고, 직업상담사들도 트럭과 창고 분야를 그렇게 보기 때문에 공급망 이미지는 문제가 있다고 본다. 그 이유는 낮은 급여와 저평가된 산업 이미지, 노령인구의 증가와 자격증 획득에 필요한 시간과 비용의 문제와 조직에서의 경쟁을 들었다. 그러나 산업의 발전에 따라 물류관련 전문인력의 증가가 예상되는데 앞으로 어떠한 기술과 지식과 능력을 갖춘 인재를 육성해야 하는지에 대해서 연구하였다. 본 논문은 호주의 물류 및 공급망 전문가의 개발에 관한 연구이다.The importance of logistics is increasing worldwide. With the development of the logistics industry, the number of students and workers has increased. Due to the increase in world trade volume and the increase in logistics demand, many people are engaged in logistics, and the logistics industry is growing steadily. This paper deals with the current and future manpower securing the development of Australian logistics industry. From the macroeconomic backgrounds of the economy, labor and trade associated with the Australian logistics industry, we have identified the supply chain perception and future employment prospects for the logistics industry and have studied the capabilities and skills required in supply chain management in response. According to the data on the favorability of logistics, it is seen that students do not think that they are sexy compared to other jobs, and career advisors also see trucks and warehouses. The reasons are low Wages and poor industrial image, increased aging population, time and cost of acquiring qualifications and competition in organizations. However, as the industry develops, it is expected to increase the number of skilled manpower related to logistics. We have studied what kind of skills, knowledge and abilities are needed. This paper deals with the development of Australian logistics and supply chain Professionals.

The Effects of Transparency on Trading Profits and Price Informativeness: Evidence From Corporate Bonds

We examine the effects of post-trade transparency on intermediation in the over-the-counter corporate bond market using the staggered introduction of TRACE as a natural experiment. Post-trade transparency leads to increased trading volume and more connected dealer networks. Transparency reduces dealers' profitability but also their portfolio risk and adverse selection costs. In contrast to prior research suggesting that TRACE benefits customers at the expense of dealers, we show that the net effect on dealer welfare is ambiguous. Bond spreads are less predictive of default in a transparent market, consistent with reduced profitability of informed trade weakening incentives to produce information.

The Belt and Road Initiative: Impact on Trade Patterns Between China and Central Asia

The recent rise of Chinese overseas development assistance activities has inspired debate on various issues—to include the changing nature of world order. Amid this debate, this paper investigates the impact of the Belt and Road Initiative (BRI). It applies the gravity model and analyzes Chinese foreign aid data to reveal the impact of BRI on China’s trade with Central Asian countries. This study argues that the change in trade patterns in Central Asian countries is attributed to Chinese investment in the region’s infrastructural connectivity. The empirical results using panel data show that a 1% increase in bilateral official development flows (ODF) of China specific to five Central Asian countries leads to a 0.238% increase in Chinese bilateral trade volume with these recipient countries. Moreover, the impact of Chinese bilateral ODF (0.046%) is larger than the impact of the OECD’s average ODF (0.0077%) and Chinese bilateral ODF specific to five Central Asian countries have an even larger than average Chinese ODF impact (0.238%). This greater degree of impact of Chinese ODF is related to geographical proximity and to improvements in infrastructure connectivity. Recent trade increases between China and Central Asian countries are attributed to the recent construction of oil and gas pipelines under the BRI scheme and a rise in the export of Chinese manufacturing products.

Lower tick sizes and futures pricing efficiency: evidence from the emerging Malaysian market

We provide robust evidence of the impact on spot market liquidity and the pricing efficiency of FBM-FKLI index futures following the introduction of lower tick sizes for the stocks listed in the Bursa Malaysia. Our findings show a significant increase in unexpected trading volume and the speed of mean reversion of the futures mispricing. We find that the increase in the unexpected trading volume of the underlying stocks helps in reducing inter-market price discrepancies. The findings offer new evidence that lowering of tick sizes improves pricing efficiency in the Malaysian futures market.

The role of information systems usage in enhancing port logistics performance: evidence from the Dar Es Salaam port, Tanzania

This study investigated the role of information systems usage in enhancing port logistics performance using the port of Dar es Salaam, Tanzania, as an example. Specifically, the study examined the role of information systems usage in contributing to reducing shipping and trucking costs, improving on-time delivery of goods and services, increasing trade volume, and enhancing organisational logistics capability. The study employed a quantitative approach, with questionnaires deployed to gather data about information systems usage and the attendant effects. The reliability was measured using Cronbach’s alpha. A canonical correlation analysis was performed to estimate the relationship of information systems usage to the port logistics performance. The study established that relationships exist between information systems usage and the perceived decrease in shipping and trucking costs, timely delivery of goods and services, perceived increase in trade volume, and enhanced organisational logistics capability. Based on these findings, the study recommends that ports consider building the capacity of their employees to utilise and manage information systems much more effectively and efficiently to increase the port’s performance.

The relationship between economic activities and rail freight transport

Purpose- The aim of this study is to determine the relationship between the amount of cargo carried by the railway and economic activities of Turkey, and to contribute to Turkey's determination of the required investment amount by detecting the amount of increase in potential demand of railway transport in our country's progress in achieving the objectives of the 2023 vision. In addition, the emphasis on railways in the transport process will make a significant contribution to the green supply chain objectives by reducing losses to the environment. Methodology- In this study, methodology consists of three methods; firstly, the amount of cargo transported by railways and Turkey's trade volume were analyzed by econometric techniques covering the years 1977-2016, and the coefficients were used to forecast cargo transportation by railways in 2023; secondly, the European Union countries that have similar nature with Turkey were tried to be determined by hierarchical clustering analysis; and thirdly, a data envelopment analysis was implemented to these identified countries. Because, the efficient usage of current infrastructure is also important for planning future investment needs. Findings- As a result of the econometric analysis, a significant positive relationship was found between the variables. A 1% increase in trade volume leads to an increase of about 0.35% in freight loads on rail transport, consequently the increase in the transported cargo was calculated as 85%. According to cluster analysis, Turkey was placed in a group which included United Kingdom, France and Italy, and was the least efficient country in the group considering the results of the data envelopment analysis. Conclusion- As a result of these analyzes, it was determined that in order to effectively serve the 1.17 trillion-dollar trade volume targeted by our country in 2023, it needed short-term efficiency-enhancing investments and long-term serious infrastructure investments.

Fake News: Evidence from Financial Markets

Using a unique dataset of fake paid-for articles obtained from an SEC investigation, we examine the impact of fake news in financial markets. In addition to the known fake articles, we use a linguistic algorithm to detect deception in expression for a much larger set of news content with unknown authenticity. The known fake articles are used to validate the algorithm. We find increases in abnormal trading volume and temporary price impact following fake news for small firms, but no impact for large firms. Following the SEC’s announced investigation, we find a marked decrease in the probability of false content and a decrease in reaction by investors to all news, but especially content with less authenticity. These findings are most pronounced for small firms with high retail ownership. Finally, small firms engage in press releases, 8-K filings, and insider trading that coincide with fake articles, consistent with concerns of coordinated stock price manipulation. No such patterns are observed for large firms. Our setting provides a unique opportunity to quantify fake news’ impact that avoids the joint hypothesis problem plaguing tests of informational efficiency.

The impact of trading volume on the stock market credibility: Bohmian quantum potential approach

Price return is an interesting factor for many investors; however, it is expected that the price return to be affected by the trading volume of any given market as a complex system. The Bohmian quantum mechanics is used due to the time correlation of return and volume of the stock markets under consideration. Recent studies have shown that the quantum potential given by the Bohmian quantum mechanics confines price return variations into a definite interval. In this study, we extend the quantum potential concept to investigate the behavior of trading volume and its possible influences on the price return. The obtained results show that the quantum potential behaves in the same manner for trading volume as the price return, and confines the variations of the volume into a specific domain. Furthermore, a joint quantum potential as a function of return and volume is derived by the probability distribution function (PDF) constructed by the real data of a given market. It serves as a suitable instrument to investigate the relationship between these variables and to check the credibility of the market at higher volumes. The resultant PDF and the corresponding joint quantum potential illustrate that the variations of price return at higher volumes decrease as the trading volume increases, making the market more credible which is more pronounced in developed markets.

The impact of order imbalance on returns, liquidity, and volatility in agricultural commodity markets

PurposeThe purpose of this paper is to investigate and compare the impact of order imbalance on returns, liquidity and price volatility in agricultural futures markets on an intraday basis. The authors examine whether order imbalance is more powerful to explain variations in asset prices compared to other indicators of trading activity, particularly trading volume.Design/methodology/approachUsing Chicago Mercantile Exchange best bid best offer data, the impact of order imbalance is analyzed via regression analyses. The analyses are carried out for corn, wheat, soy, live cattle and lean hogs in March 2008 and March 2016.FindingsResults confirm the positive relation between order imbalance and returns as well as between order imbalance and price volatility as suggested by market microstructure models. Order imbalance, however, does not generally outperform trading volume as an explanatory variable.Practical implicationsFor some contracts, returns can be predicted using lagged order imbalance. This offers the opportunity to derive profitable trading strategies.Originality/valueThis paper is one of the first attempts to explore the relationship between order imbalance and returns, liquidity and volatility for agricultural commodity futures on an intraday basis, accounting for the increased trading volume and for the high speed at which new information enters the market in an electronic trading environment.

AN ANALYSIS OF SEABORNE TRADE THROUGH ISKENDERUN BAY

Increasing trade volume and globalisation of supply chains have increased the importance of ports
 in international trade. Due to these developments, ports need to analyse the commodities in their hinterland to
 be able to meet their customer requirements. Iskenderun Bay, which is
 considered as a gateway to the Mediterranean
 Sea, has sufficient infrastructure to serve several
 commodity groups. The share of the total cargo handling of Iskenderun Bay is
 9.34 % in Turkey. This study aims to analyze the frequency distributions of shipments,
 to determine the prominent cargo groups as well as exporting/importing regions
 of the ports located in Iskenderun Bay. The total amount of import-export cargoes and cargo groups have been analysed by
 the loading/discharging tonnages of the vessels, exporting/importing regions
 and the handling ports in Iskenderun. Calculation of the total amount of cargo on ton basis
 and shipment frequency has been found by using RStudio software to determine
 prominent cargo groups and main export/import
 regions. Assan Port, Yazıcı Port, Isdemir Port, MMK Metalurji Port, Orhan
 Ekinci Pier, Limak Port, Gübretaş Port, Sasa Terminal, and Petrol Ofisi Pier
 Port have been selected for the analysis. 

FLOAT, SPECULATION AND STOCK PRICE: EVIDENCE FROM THE SPLIT SHARE STRUCTURE REFORM IN CHINA

The Split Share Structure Reform in China offers a unique opportunity to test whether the supply of tradable shares (i.e., float) has a significant impact on the degree of speculation. After firms completed the reform, their float increased by 31% on average, while turnover and trading volume also increased substantially. We use information from firms’ reform plan to derive an estimate of the price premium of tradable shares over non-tradable shares before the reform and find that, after controlling for differences in liquidity and profitability, the price premium is significantly related to proxies for the level of speculative trading in tradable shares. Moreover, firms that were highly speculated before the reform had significantly smaller increase in turnover and trading volume than firms that were less speculated. Overall, our evidence confirms that there is a significant speculative component in the market price of tradable shares in China and a large increase in float dampens speculative trading.

Combating Customs Revenue Fraud in WCO East and Southern African Region: A Mirror Analysis Through the Lens of Malawi

Increasing trade volumes breeds the risk of Customs fraud which challenges Customs administrations to do more with limited resources. Against this backdrop, the study employs mirror analysis in order to identify, classify and approximate Customs revenue fraud in Malawi’s 2015 trade data. The analysis reveals plausible fraud cases in various products and this will inform Customs policies in risk analysis, enforcement and post-clearance audit. To this effect, a fraud control plan which will help in sealing revenue leakages has been suggested. Implications of the study on economic operators and trade facilitation are also addressed.

What does investors' online divergence of opinion tell us about stock returns and trading volume?

We analyse 289,443 online tweets from StockTwits and construct a divergence of opinion (disagreement) indicator for investigating the impact of disagreement on stock returns and trading volume. We find that the impact of disagreement on returns is asymmetric; it is negative (positive) during bull (bear) market periods. We also find that higher online disagreement increases trading volume; this effect is detected irrespective of whether the market is bullish or bearish. Moreover, portfolio strategies that are designed on the basis of our disagreement indicator are shown to generate abnormal profits. Overall, our results confirm the important role of belief dispersion in financial markets.

Price transmission in regional beef markets: Australia, China and Southeast Asia

With increasing trade volumes in the Asian region, it could be expected that beef markets are becoming increasingly integrated. Major beef exporters or importers can be expected to lead others, but others can be separated by obstacles to trade or small trade volumes. This paper examines price transmission between the key regional beef markets of Australia, China, Indonesia and Vietnam. It draws on quarterly price data from 2005 to 2015 and methods including co-integration analysis, granger causality test, and vector error correction model and impulse response function. The results show that log-run equilibrium relationships exist in two of the trading relationships, where the beef price in Indonesia is affected by the Australian market while the beef price in Vietnam is impacted by the Chinese market. However, Australia and China’s beef prices are not impacted by Indonesian or Vietnamese prices. Reasons behind these price inter-relationships are discussed.

Challenges for Polish ferry market development in Baltic Sea Region

Polish ferry market has become one of the prime segments of ferry shipping in Baltic Sea Region. It dominates in ferry industry in South Baltic. The ferry cargo and passenger traffic has been growing steadily since Poland’s accession to the European Union. The estimates show that in 2017 the operators transported more than 1,2 million passengers and over 520 thousand cargo vehicles between ports in Poland and Sweden. The increase in trade turnover between Scandinavia and Central Europe as well as growth of tourism affect the demand for ferry transport. The aim of this paper is to explore the prime determinants influencing the development of Polish ferry shipping and to research the challenges that carriers operating the ferry services from Poland to Sweden must face such as internal competition between the operators in Polish market, competition from German and Lithuanian routes and low cost airlines as well as increasing trade volumes. The research hypothesis is: the growth of trade between Scandinavia and Central Europe as well as tourism traffic will increase the demand for ferry transport from Polish ports. Detailed research hypotheses are that: ferry services between Poland and Sweden constitute the primary market on the South Baltic and new tonnage investments to increase the capacity have to be taken.

ТЕОРЕТИКО-МЕТОДОЛОГІЧНЕ ЗНАЧЕННЯ МІЖНАРОДНОГО ЛІСТИНГУ АКЦІЙ ДЛЯ ІНВЕСТОРІВ ТА ЕМІТЕНТІВ

In the conditions of globalization of the economic environment, the integration processes of the international capital markets are intensifying, which envisages the possibility of placing securities in foreign markets. This gives some benefits to national investors and issuers. These benefits include: scaling up the attraction of investors’ financial resources; strengthening of the business reputation and issuer’s credit rating; Successful placement of shares in the international market contributes to the increase of profits. International listing of shares increases the prestige and image of the issuer. The main motivation of most companies entering the foreign capital markets is only financial – they plan to increase their capital in the markets of highly developed countries and increase the liquidity of their shares. International listing provides new markets for more active securities that do not require detailed reporting and have significant liquidity. In some cases, the introduction of international listing increases the value of the company’s shares. As a rule, this happens more often in the US, when the market value of shares is higher than that existing on the issuer’s market. Moreover, the fact of an increase in the number of investors who buys company shares increases the liquidity of shares, narrowing the spread. That is, the main motive for stock quotes abroad is to increase the value of its capital and liquidity of shares, which will eventually give an opportunity to attract additional capital. All this contributes to the growth of the number of national companies that market their shares on foreign stock exchanges. Investigated double listingof shares of companies; discloses the conditions under which the international listing of shares of companies becomes one of the most appropriate ways of financing business; the influence of international listing of companies’ shares on the liquidity of shares in the domestic market, increase of trading volume of shares of the company was revealed; invited Ukrainian joint-stock companies to use the international listing to increase their capitalization.

Voluntary disclosures and market response to earnings announcements

Purpose The aim of this paper is to investigate the impact of voluntary disclosure on information asymmetry between investors and the average information content of subsequent the earnings announcement. Design/methodology/approach The authors use empirical methodology relying on multiple regression analyses. The authors estimate models of trading volume and stock returns around the earnings’ release date as a function of voluntary disclosures, measured using information in the 8-K statements. Findings Voluntary disclosures prior to the earnings release date increase trading volume related to stock returns. In addition, voluntary disclosures also reduce stock price movement around that date. Research limitations/implications The results indicate that voluntary disclosures increase trading volume related to stock returns around the earnings release date. Such increases indicate increased differential precision among investors, demonstrating that voluntary disclosures increase differences in opinion among investors. The reduced stock price movement around the earnings release date also show that voluntary disclosures reduce the information content of earnings. One limitation is that the measure of voluntary disclosures does not consider the variation in the information content of individual disclosures. Practical implications Firms who make voluntary disclosures will need to carefully consider how to structure such releases to minimize asymmetry between investors. Investors should pay greater attention to finding out, and interpreting, voluntary disclosures by firms. Social implications Regulators have previously expressed concern about leveling the playing field between more and less informed investors. The results showing increased differences in information as a result of voluntary disclosures provide valuable insights as regulators debate the balance of mandated and voluntary disclosure. Originality/value This is the first study to investigate the effect of voluntary disclosures on information asymmetry among investors using trading volume and, consequently, the first to find increased differences among investors that result from those voluntary disclosures. The paper is also the first to use a direct measure of voluntary disclosure developed by Cooper et al. to demonstrate the negative relation between voluntary disclosure and the average informativeness of earnings announcements.

Do Journalists Help Investors Analyze Firms' Earnings News?

I reexamine whether media articles with substantive editorial content inform the market's reaction to firms' earnings news. Using variation in earnings announcement coverage because of restructuring at The Wall Street Journal (WSJ), my analyses suggest that WSJ earnings articles improve price discovery and increase trading volume at S&P 500 earnings announcements. Additionally, textual analysis suggests media articles that differ more from the firm's earnings release increase trading volume, and that the differences speed up (slow down) price discovery when they corroborate (contradict) the tone of the firm's news. Such high difference articles are slightly longer, are more readable and specific, include more references to the industry and economy, repeat less “stale” news published in previous WSJ articles, and quote more investor and expert sources. Overall, my paper contributes to research on the role of the media in earnings news by providing evidence that journalists' editorial content helps investors understand firms' earnings, instead of simply entertaining or increasing awareness.