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Microstructure and Seasonality in the UK Equity Market

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Author Info
Paul Draper (Department of Accounting and Finance, University of Strathclyde,)
Krishna Paudyal

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Abstract

This paper explores seasonality in the UK stock market. It examines the impact of alternative company year-ends on returns as well as seasonality in bid-ask spreads and trading activity variables including volume, number and size of trades. Consistent with the evidence elsewhere, seasonal variation in stock returns and trading activity is established although there is little evidence of a seasonal pattern in relative bid-ask spreads. Trading rules based on the seasonal patterns do not suggest that seasonality can be exploited to earn excess profits. Copyright Blackwell Publishers Ltd 1997.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/1468-5957.00158
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Business Finance & Accounting.

Volume (Year): 24 (1997-09)
Issue (Month): 7&8 ()
Pages: 1177-1204
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Handle: RePEc:bla:jbfnac:v:24:y:1997-09:i:7&8:p:1177-1204

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  1. Tarun Chordia & Richard Roll & Avanidhar Subrahmanyam, 2003. "Determinants of Daily Fluctuations in Liquidity and Trading Activity," Cuadernos de Economía (Latin American Journal of Economics), Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 728-751. [Downloadable!]
  2. Brian M. Lucey & Shane Whelan, 2004. "Monthly and semi-annual seasonality in the Irish equity market 1934-2000," Applied Financial Economics, Taylor and Francis Journals, vol. 14(3), pages 203-208, February. [Downloadable!] (restricted)
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This page was last updated on 2009-12-19.


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