Has political instability contributed to price clustering on Fiji's stock market?
AbstractThe goal of this paper 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 âpanic trading‟ hypothesis which states political instability induces price clustering. We find evidence that political instability in Fiji induces price clustering behavior.
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Bibliographic InfoPaper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Financial Econometics Series with number 2011_03.
Date of creation: 29 Aug 2011
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Political instability; price clustering; Fiji;
Other versions of this item:
- Narayan, Paresh Kumar & Smyth, Russell, 2013. "Has political instability contributed to price clustering on Fiji's stock market?," Journal of Asian Economics, Elsevier, vol. 28(C), pages 125-130.
- NEP-ALL-2011-09-05 (All new papers)
- NEP-CWA-2011-09-05 (Central & Western Asia)
- NEP-POL-2011-09-05 (Positive Political Economics)
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