Can the CFO Trust the FX Exposure Quantification from a Stock Market Approach?

2009 ◽  
Author(s):  
Tom Aabo ◽  
Danielle Brodin
Keyword(s):  
Stock Market ◽  
Market Approach

scholarly journals Interactions between the Real Economy and the Stock Market: A Simple Agent-Based Approach

2012 ◽  
Vol 2012 ◽  
pp. 1-21 ◽  
Author(s):  
Frank Westerhoff
Keyword(s):  
Stock Market ◽  
Economic Activity ◽  
Real Economy ◽  
Agent Based ◽  
The Real ◽  
Goods Market ◽  
Numerical Tools ◽  
Market Approach ◽  
Fundamental Values

We develop a simple behavioral macromodel to study interactions between the real economy and the stock market. The real economy is represented by a Keynesian-type goods market approach while the setup for the stock market includes heterogeneous speculators. Using a mixture of analytical and numerical tools we find, for instance, that speculators may create endogenous boom-bust dynamics in the stock market which, by spilling over into the real economy, can cause lasting fluctuations in economic activity. However, fluctuations in economic activity may, by shaping the firms' fundamental values, also have an impact on the dynamics of the stock market.

scholarly journals Impact of Market Maker to Efficiency of Stock Market with Dark Pool - Artificial Market Approach

2017 ◽  
Vol 32 (5) ◽  
pp. AG16-C_1-10
Author(s):  
Shin Nishioka ◽  
Takuma Torii ◽  
Takuya Kusumoto ◽  
Wataru Matsumoto ◽  
Kiyoshi Izumi
Keyword(s):  
Stock Market ◽  
Market Maker ◽  
Artificial Market ◽  
Dark Pool ◽  
Market Approach

scholarly journals Stock Market Wealth and the Real Economy: A Local Labor Market Approach

2021 ◽  
Vol 111 (5) ◽  
pp. 1613-1657
Author(s):  
Gabriel Chodorow-Reich ◽  
Plamen T. Nenov ◽  
Alp Simsek
Keyword(s):  
Monetary Policy ◽  
Labor Market ◽  
Stock Market ◽  
Stock Prices ◽  
Market Analysis ◽  
Real Economy ◽  
Local Labor Market ◽  
Percent Increase ◽  
Market Approach ◽  
Local Stock

We provide evidence of the stock market consumption wealth effect by using a local labor market analysis. An increase in local stock wealth driven by aggregate stock prices increases local employment and payroll in nontradable industries and in total, with no effect on employment in tradable industries. In a model of geographic heterogeneity in stock wealth, these responses imply an MPC of 3.2 cents per year and that a 20 percent increase in stock valuations, unless countered by monetary policy, increases the aggregate labor bill by at least 1.7 percent and aggregate hours by at least 0.7 percent two years after the shock. (JEL E21, E24, E52, G12, G51, R22, R23 )

Predicting Stock Market Performance

2020 ◽  
pp. 1-10
Author(s):  
Thomas Plieger ◽  
Thomas Grünhage ◽  
Éilish Duke ◽  
Martin Reuter
Keyword(s):  
Stock Market ◽  
Risk Taking ◽  
Life Stress ◽  
Price Volatility ◽  
Individual Characteristics ◽  
Self Report ◽  
Financial Behavior ◽  
Market Simulation ◽  
Stock Market Performance ◽  
Risk Taking Behavior

Abstract. Gender and personality traits influence risk proneness in the context of financial decisions. However, most studies on this topic have relied on either self-report data or on artificial measures of financial risk-taking behavior. Our study aimed to identify relevant trading behaviors and personal characteristics related to trading success. N = 108 Caucasians took part in a three-week stock market simulation paradigm, in which they traded shares of eight fictional companies that differed in issue price, volatility, and outcome. Participants also completed questionnaires measuring personality, risk-taking behavior, and life stress. Our model showed that being male and scoring high on self-directedness led to more risky financial behavior, which in turn positively predicted success in the stock market simulation. The total model explained 39% of the variance in trading success, indicating a role for other factors in influencing trading behavior. Future studies should try to enrich our model to get a more accurate impression of the associations between individual characteristics and financially successful behavior in context of stock trading.

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