Autocorrelation of the trade process

This study investigates how duration-based trading intensity modifies the first-order autocorrelation and the transitory variance of the trade process. Because prices are conditional expected values, a structural model in which the trade duration represents the rate at which prices incorporate new i...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Ben Sita, Bernard (author)
التنسيق: article
منشور في: 2010
الوصول للمادة أونلاين:http://hdl.handle.net/10725/4944
http://dx.doi.org/10.1016/j.qref.2010.03.007
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.sciencedirect.com/science/article/pii/S106297691000027X
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author Ben Sita, Bernard
author_facet Ben Sita, Bernard
author_role author
dc.creator.none.fl_str_mv Ben Sita, Bernard
dc.date.none.fl_str_mv 2010
2016-12-15T07:19:19Z
2016-12-15T07:19:19Z
2016-12-15
dc.identifier.none.fl_str_mv 1062-9769
http://hdl.handle.net/10725/4944
http://dx.doi.org/10.1016/j.qref.2010.03.007
Sita, B. B. (2010). Autocorrelation of the trade process: Evidence from the Helsinki Stock Exchange. The Quarterly Review of Economics and Finance, 50(4), 538-547.
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.sciencedirect.com/science/article/pii/S106297691000027X
dc.language.none.fl_str_mv en
dc.relation.none.fl_str_mv The Quarterly Review of Economics and Finance
dc.rights.*.fl_str_mv info:eu-repo/semantics/openAccess
dc.title.none.fl_str_mv Autocorrelation of the trade process
Evidence from the Helsinki Stock Exchange
dc.type.none.fl_str_mv Article
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
description This study investigates how duration-based trading intensity modifies the first-order autocorrelation and the transitory variance of the trade process. Because prices are conditional expected values, a structural model in which the trade duration represents the rate at which prices incorporate new information is developed. This refined model is an extension of the one developed by Madhavan, Richardson, and Roomans (1997) and allows parameters characterizing the arrival rate of new information to be derived. Testing this model with data from the Helsinki Stock Exchange, I was able to determine that a model ignoring trading intensity effects on price changes would underestimate the transitory effects of the trade process. This finding suggests that trade duration captures neglected elements of implicit trading costs that increase with market microstructure effects
eu_rights_str_mv openAccess
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id LAURepo_4d60da7fb50df9b99f9bdd09ee6defe5
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Sita, B. B. (2010). Autocorrelation of the trade process: Evidence from the Helsinki Stock Exchange. The Quarterly Review of Economics and Finance, 50(4), 538-547.
language_invalid_str_mv en
network_acronym_str LAURepo
network_name_str Lebanese American University repository
oai_identifier_str oai:laur.lau.edu.lb:10725/4944
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spelling Autocorrelation of the trade processEvidence from the Helsinki Stock ExchangeBen Sita, BernardThis study investigates how duration-based trading intensity modifies the first-order autocorrelation and the transitory variance of the trade process. Because prices are conditional expected values, a structural model in which the trade duration represents the rate at which prices incorporate new information is developed. This refined model is an extension of the one developed by Madhavan, Richardson, and Roomans (1997) and allows parameters characterizing the arrival rate of new information to be derived. Testing this model with data from the Helsinki Stock Exchange, I was able to determine that a model ignoring trading intensity effects on price changes would underestimate the transitory effects of the trade process. This finding suggests that trade duration captures neglected elements of implicit trading costs that increase with market microstructure effectsPublishedN/A2016-12-15T07:19:19Z2016-12-15T07:19:19Z20102016-12-15Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article1062-9769http://hdl.handle.net/10725/4944http://dx.doi.org/10.1016/j.qref.2010.03.007Sita, B. B. (2010). Autocorrelation of the trade process: Evidence from the Helsinki Stock Exchange. The Quarterly Review of Economics and Finance, 50(4), 538-547.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttp://www.sciencedirect.com/science/article/pii/S106297691000027XenThe Quarterly Review of Economics and Financeinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/49442021-03-19T09:10:08Z
spellingShingle Autocorrelation of the trade process
Ben Sita, Bernard
status_str publishedVersion
title Autocorrelation of the trade process
title_full Autocorrelation of the trade process
title_fullStr Autocorrelation of the trade process
title_full_unstemmed Autocorrelation of the trade process
title_short Autocorrelation of the trade process
title_sort Autocorrelation of the trade process
url http://hdl.handle.net/10725/4944
http://dx.doi.org/10.1016/j.qref.2010.03.007
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.sciencedirect.com/science/article/pii/S106297691000027X