The Impact of Derivative Trading on the Liquidity of Stocks

2014 ◽  
Vol 39 (3) ◽  
pp. 51-66
Author(s):  
M S Narasimhan ◽  
Shalu Kalra
Keyword(s):  
Price Impact ◽  
Desirable Outcome ◽  
Time Period ◽  
Short Run ◽  
Impact Measure ◽  
Underlying Stocks ◽  
To Come ◽  
Long Term Impact ◽  
The Impact

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 the process reduce the search cost and friction. Higher liquidity motivates more investors to participate in the stock market. Introduction of derivatives of the underlying stock increases the opportunity set available to investors and hence affect the liquidity of the underlying stock. This study examines the impact of derivative trading on the liquidity of underlying stock using price impact measure of liquidity. The price impact measure of liquidity, which actually measures illiquidity, is given by the average daily ratio of absolute return of the stock to the daily volume over a period of time. The advantage of this measure is that it is based on the observed price changes associated with trades. Two time periods have been chosen to examine the short-term and long-term impact of derivative listing on liquidity of underlying stocks. The first time period is one month pre- and post-listing and the second time period is one year pre- and post-listing. The results of this study show a shift in the volume from cash market to derivative market, decline in the number of trades, and lower volatility after the introduction of derivative trading. The illiquidity of the stocks also increased in the short run after the introduction of derivative trading and this is definitely not a desirable outcome of introduction of derivative trading. The sample has been divided into four quartiles on the basis of pre-liquidity levels to examine whether the change in liquidity is affected by the pre liquidity levels of the underlying stock. The results show that the impact of derivative trading on long-term liquidity of the market depends on the level of liquidity prior to the introduction of derivative trading. They also show an improvement in long-term liquidity after derivative trading when the liquidity of stocks prior to derivative trading was not high. In other words, derivative listing improved the liquidity of illiquid stocks significantly and served one of the basic objectives of risk management. On the other hand, long-term liquidity was marginally affected if the stocks were already liquid and it is not a matter of concern.

scholarly journals The Impact of Exchange Rate on Bangladesh’s Export: A Cointegration Approach

2020 ◽  
pp. 22-30
Author(s):  
Takrima Sayeda
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange Market ◽  
Export Performance ◽  
Long Run ◽  
Time Period ◽  
Floating Exchange Rate ◽  
Short Run ◽  
Year 2000 ◽  
The Impact

The purpose of the paper is to see if there is any relationship exist between free floating exchange rate and export performance of Bangladesh. It inspects the monthly data of exchange rate and export value for the time period between year 2000 and 2017. It utilized the Johansen [1] cointegration approach to identify the extent of long run and short run relationship between them. The study could not establish neither any long term trend nor any short term dynamics between the variables. Respective variables are significantly related to their own immediate past values. Distant past values do not have any implications. This study suggests that short run macroeconomic policy would be beneficial to influence the foreign exchange market and eventually the performance of export of Bangladesh.

Listening to the child victim of abuse through the process of therapy: A case study

2001 ◽  
Vol 26 (3) ◽  
pp. 18-22 ◽  
Author(s):  
Neerosh Mudaly ◽  
Chris Goddard
Keyword(s):  
Therapeutic Process ◽  
Young Person ◽  
Response To Therapy ◽  
Child Victim ◽  
To Come ◽  
Long Term Impact ◽  
The Impact ◽  
Theoretical Considerations

When a child has been abused by his or her father or father-figure and makes the statement ‘I want Dad to come home’, whose voice are we hearing in treatment, how do we interpret and respond to what the child is saying? Understanding and responding to the voices of victims of abuse is a complex issue. This paper explores the issues of listening to and responding to a young vicitm of abuse in the context of the impact of the abuse on this young person, and how these issues emerged and were addressed in the therapeutic process. Amanda, a 13-year-old girl, disclosed sexual abuse by her stepfather. In the initial months of counselling she repeatedly expressed her wish for her stepfather to return home. Amanda’s response to therapy, the short-term and long-term impact issues that were addressed, and the various therapeutic techniques that were used to assist in her recovery, are traced in the context of theoretical considerations.

Determinants of Inflation in Vietnam: A VECM Approach

2015 ◽  
Vol 22 (04) ◽  
pp. 26-50
Author(s):  
Ngoc Tran Thi Bich ◽  
Huong Pham Hoang Cam
Keyword(s):  
Interest Rate ◽  
Crude Oil ◽  
Error Correction ◽  
Budget Deficit ◽  
Oil Prices ◽  
Crude Oil Prices ◽  
Domestic Credit ◽  
Short Run ◽  
The Impact

This paper aims to examine the main determinants of inflation in Vietnam during the period from 2002Q1 to 2013Q2. The cointegration theory and the Vector Error Correction Model (VECM) approach are used to examine the impact of domestic credit, interest rate, budget deficit, and crude oil prices on inflation in both long and short terms. The results show that while there are long-term relations among inflation and the others, such factors as oil prices, domestic credit, and interest rate, in the short run, have no impact on fluctuations of inflation. Particularly, the budget deficit itself actually has a short-run impact, but its level is fundamentally weak. The cause of the current inflation is mainly due to public's expectations of the inflation in the last period. Although the error correction, from the long-run relationship, has affected inflation in the short run, the coefficient is small and insignificant. In other words, it means that the speed of the adjustment is very low or near zero. This also implies that once the relationship among inflation, domestic credit, interest rate, budget deficit, and crude oil prices deviate from the long-term trend, it will take the economy a lot of time to return to the equilibrium state.

A Perspective On The Impact of COVID-19 Pandemic in Basic Science Research and its Future implications

Coronaviruses ◽  
2020 ◽  
Vol 01 ◽  
Author(s):  
Yam Nath Paudel ◽  
Efthalia Angelopoulou ◽  
Bhupendra Raj Giri ◽  
Christina Piperi ◽  
Iekhsan Othman ◽  
...  
Keyword(s):  
Basic Science ◽  
Large Scale ◽  
Preventive Measure ◽  
Science Research ◽  
Research Institutes ◽  
Basic Science Research ◽  
Long Term Consequences ◽  
Long Term Impact ◽  
The Impact

: COVID-19 has emerged as a devastating pandemic of the century that the current generations have ever experienced. The COVID-19 pandemic has infected more than 12 million people around the globe and 0.5 million people have succumbed to death. Due to the lack of effective vaccines against the COVID-19, several nations throughout the globe has imposed a lock-down as a preventive measure to lower the spread of COVID-19 infection. As a result of lock-down most of the universities and research institutes has witnessed a long pause in basic science research ever. Much has been talked about the long-term impact of COVID-19 in economy, tourism, public health, small and large-scale business of several kind. However, the long-term implication of these research lab shutdown and its impact in the basic science research has not been much focused. Herein, we provide a perspective that portrays a common problem of all the basic science researchers throughout the globe and its long-term consequences.

Impact of ETF Listing on the Returns Generated by Underlying Stocks: Indian Evidence

2021 ◽  
pp. 0258042X2199101
Author(s):  
Prabhdeep Kaur ◽  
Jaspal Singh
Keyword(s):  
Event Study ◽  
Abnormal Returns ◽  
Price Impact ◽  
Exchange Traded Funds ◽  
Study Analysis ◽  
Jel Codes ◽  
Securities Transaction Tax ◽  
Underlying Stocks ◽  
Transaction Tax ◽  
The Impact

The advent of exchange traded funds (ETFs) has rendered index trading much affordable compared to their futures counterparts. The present study attempts to examine the impact of ETF listing on the price of the constituent securities of the index that it aims to track. The sample comprises of all the equity ETFs listed in India from 1 January 2002 to 31 March 2019. Event study analysis has been used to examine whether listing of ETFs bore any price impact on the constituent stocks of ETFs. To account for robustness, both parametric and non-parametric tests have been employed. The estimates obtained from event study analysis revealed that the constituent stocks generated insignificant returns for the period extending from January 2002 to March 2009 and April 2009 to March 2013 but positive and significant cumulative average abnormal returns (CAARs) post ETF listing for the period ranging from April 2013 to March 2019, thus providing evidence in support of positive price impact. The permission granted to pension funds, insurers and Employees’ Provident Fund Organisation (EPFO) to invest their funds in ETFs as well as reduction in Securities Transaction Tax (STT) account for the observed price differential. An analysis of the factors accounting for the variation in valuation effects ascertained that the stocks that were traded thinly prior to ETF listing and those forming part of ETFs with larger asset base experienced positive price impact following ETF listing. JEL Codes: G11, G14

scholarly journals The Long-Term Impact of Different Offline Population Inclusion Strategies in Probability-Based Online Panels: Evidence From the German Internet Panel and the GESIS Panel

2021 ◽  
pp. 089443932098413
Author(s):  
Carina Cornesse ◽  
Ines Schaurer
Keyword(s):  
Survey Data ◽  
Positive Impact ◽  
Alternative Mode ◽  
Mail Surveys ◽  
Internet Users ◽  
Online Panels ◽  
Long Term Impact ◽  
The Impact ◽  
Postal Mail

While online panels offer numerous advantages, they are often criticized for excluding the offline population. Therefore, some probability-based online panels have developed offline population inclusion strategies. Two dominant approaches prevail: providing internet equipment and offering an alternative survey participation mode. We investigate the impact of these approaches on two probability-based online panels in Germany: the German Internet Panel, which provides members of the offline population with internet equipment, and the GESIS Panel, which offers members of the offline population to participate via postal mail surveys. In addition, we explore the impact of offering an alternative mode only to non-internet users versus also offering the alternative mode to internet users who are unwilling to provide survey data online. Albeit lower recruitment and/or panel wave participation probabilities among offliners than onliners, we find that including the offline population has a positive long-term impact on sample accuracy in both panels. In the GESIS Panel, the positive impact is particularly strong when offering the alternative participation mode to non-internet users and internet users who are unwilling to provide survey data online.

scholarly journals THE LONG-TERM IMPACT OF SOCIAL MOVEMENTS AND REPRESSION ON DEMOCRATIC ATTITUDES

2020 ◽  
Vol 20 (3) ◽  
pp. 317-351
Author(s):  
Scott Desposato ◽  
Gang Wang
Keyword(s):  
Social Movements ◽  
High School Students ◽  
Fuzzy Regression ◽  
School Students ◽  
Attitudinal Differences ◽  
College Entry ◽  
Democratic Attitudes ◽  
Long Term Impact ◽  
The Impact

AbstractDemocracy movements in authoritarian regimes usually fail and are repressed, but they may still affect attitudes and norms of participants and bystanders. We exploit several features of a student movement to test for enduring effects of social movements on democratic attitudes. College students were the core of the movement and had wide exposure to the ideas and activities of the movement, as well as the suppression of the movement. College-bound high school students had limited exposure to the movement and its activities. Time of college entry could in theory be manipulated and endogenous, so we also use birthdate as an exogenous instrument for enrollment year. Applying a fuzzy regression discontinuity, we test for the impact of exposure to the movement on long-term attitudes. We find significant attitudinal differences between those in college during the movement, and those who started college post-movement. These results are strongest for alumni of the four universities that were most connected to the movement.

The Role of UBI in Mitigating the Effects of Psychosocial Stressors: A Review and Proposal

2021 ◽  
pp. 003329412110051
Author(s):  
Rashmi Gupta ◽  
Jemima Jacob ◽  
Gaurav Bansal
Keyword(s):  
Role Stress ◽  
Psychosocial Stressors ◽  
Basic Income ◽  
Economic Stability ◽  
The Past ◽  
Individual Outcomes ◽  
Long Term Impact ◽  
The Impact

Psychosocial stressors and social disadvantages contribute to inequalities in opportunities and outcomes. In the current paper, we use an epidemiological perspective and highlight the role stress plays on individuals by reviewing the outcomes of major stressors such as poverty and unemployment. We further analyzed the psychological and physical cost of these stressors and their long-term impact. We examined the role of universal basic income and closely looked at income experiments that were implemented in the past, in terms of their effectiveness in enhancing the community as well as individual outcomes and propose the UBI as a tool for alleviating the impact of these stressors. At a time when a major pandemic (e.g., COVID-19) threatens economic stability and health globally, we believe the UBI is relevant now, more than ever.

The Long-Term Impact of an Education for Sustainability Course on Israeli Science and Technology Teachers’ Pro-Environment Awareness, Commitment and Behaviour

2015 ◽  
Vol 31 (2) ◽  
pp. 264-279 ◽  
Author(s):  
Anat Abramovich ◽  
Yahavit Loria
Keyword(s):  
High School Teachers ◽  
Junior High School ◽  
Science And Technology ◽  
Education For Sustainability ◽  
Environmental Behaviour ◽  
Junior High School Teachers ◽  
Technology Teachers ◽  
Long Term Impact ◽  
The Impact

AbstractThe impact of an Education for Sustainability (EfS) course for science and technology junior high school teachers on the intentional and actual environmental behaviour of participants was studied by researching the EfS implementation of 13 science and technology teachers within their family, community, and work environment. The research was qualitative in nature, where science and technology teachers’ insights on the EfS course were determined by means of an open-ended questionnaire and intensive interviews. Results indicated that the course clearly influenced the vast majority of the participants, who claimed that their environmental awareness had increased and they were capable of acting responsibly. All participants acted in favour of the environment among family, community, and at work. Yet, 2 years later, implementation seemed to be undermined by various internal and external barriers, such as the unavailability of convenient resources, or resistance on the part of family. The study suggests that course designers must include reference to potential difficulties and barriers in order to circumvent future obstacles. In addition, the implementation of post-course support would encourage overcoming the gap between willingness to act and actual practice.

Methods to Reduce Traffic Speed in High-Pedestrian Rural Areas

2003 ◽  
Vol 1828 (1) ◽  
pp. 31-37 ◽  
Author(s):  
Ali Kamyab ◽  
Steve Andrle ◽  
Dennis Kroeger ◽  
David S. Heyer
Keyword(s):  
Rural Areas ◽  
Speed Limit ◽  
Single Word ◽  
Short Term ◽  
Speed Reduction ◽  
Traffic Calming ◽  
Reduction Strategies ◽  
Long Term Impact ◽  
The Impact

Many Minnesota counties are faced with the problem of high vehicle speeds through towns or resort areas that have significant pedestrian traffic. The impact of speed reduction strategies in high-pedestrian areas in rural counties of Minnesota was investigated. Speed data were collected at two selected study sites under their existing conditions ("no-treatment" or "before" condition) and after the proposed speed reduction strategies were installed. Second "after" data conditions were collected to study the short-term and long-term impact of the implemented strategies. The traffic-calming techniques employed at the Twin Lakes site consisted of removable pedestrian islands and pedestrian crossing signs. A dynamic variable message sign that sent a single-word message ("Slow") to motorists traveling over the speed limit was installed at the Bemidji site. The research study shows that the traffic-calming strategy deployed in Twin Lakes was effective in significantly reducing the mean speed and improving speed limit compliance in both the short term and long term. Despite proven effectiveness, the deployed speed reduction treatment in Bemidji Lake failed to lower the speed at the study site. The single-word message on the sign and the location of the sign, as well as a lack of initial enforcement, were the primary reasons for such failure.

Sign in / Sign up

Export Citation Format

Share Document