Has political instability contributed to price clustering on Fiji's stock market?

Narayan, Paresh and Smyth, Russel 2013, Has political instability contributed to price clustering on Fiji's stock market?, Journal of Asian economics, vol. 28, pp. 125-130, doi: 10.1016/j.asieco.2013.07.002.

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Title Has political instability contributed to price clustering on Fiji's stock market?
Author(s) Narayan, PareshORCID iD for Narayan, Paresh orcid.org/0000-0001-7934-8146
Smyth, Russel
Journal name Journal of Asian economics
Volume number 28
Start page 125
End page 130
Total pages 6
Publisher Elsevier BV
Place of publication Amsterdam, The Netherlands
Publication date 2013-10
ISSN 1049-0078
Keyword(s) stock price
price clustering
political instability
Summary The goal of this article is to examine evidence of stock price clustering on the South Pacific Stock Exchange, located in Fiji, and explore its determinants. We find that stock prices cluster at the decimal of 0 and 5, with almost half of prices settling on these two decimals. Upon investigating the determinants of price clustering on the South Pacific Stock Exchange we find that price level and volume of trade have a statistically significant positive effect on price clustering. We also propose and test a ‘panic trading’ hypothesis which states political instability induces price clustering. We find evidence that political instability in Fiji induces price clustering behaviour.
Language eng
DOI 10.1016/j.asieco.2013.07.002
Field of Research 150202 Financial Econometrics
Socio Economic Objective 910206 Market-Based Mechanisms
HERDC Research category C1 Refereed article in a scholarly journal
HERDC collection year 2013
Copyright notice ©2013, Elsevier
Persistent URL http://hdl.handle.net/10536/DRO/DU:30057327

Document type: Journal Article
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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Created: Mon, 28 Oct 2013, 15:38:59 EST by Aysun Alpyurek

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