Deakin University
Browse

File(s) under permanent embargo

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

journal contribution
posted on 2013-10-01, 00:00 authored by Paresh Narayan, R Smyth
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.

History

Journal

Journal of Asian economics

Volume

28

Pagination

125 - 130

Publisher

Elsevier BV

Location

Amsterdam, The Netherlands

ISSN

1049-0078

eISSN

1873-7927

Language

eng

Publication classification

C1 Refereed article in a scholarly journal

Copyright notice

2013, Elsevier

Usage metrics

    Research Publications

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC