Are Short Sellers Positive Feedback Traders? Discussion A.G. Malliaris, Quinlan School of Business Loyola University Chicago Multinational Finance Conference,

Slides:



Advertisements
Similar presentations
Short Selling in France during the Crisis, the Bans and What Has Changed since the Euro Correction Emmanuel Fragnière and Iliya Markov November 2010.
Advertisements

1 Regulating Short Selling: The European Framework(s) and the Regulatory Arbitrages Giampaolo Gabbi and Paola Giovinazzo.
Emerging Market Short Sales: Ambrosia or Kryptonite? Edward Pekarek, Esq. and Maryam Meseha.
1 Linked List Demo Node third = new Node(); third.item = "Carol"; third.next = null; Node second = new Node(); second.item = "Bob"; second.next = third;
How to do the Evaluating Questions Paper By the end of this lesson; 1. Better understanding of how to do the Evaluating Questions in paper 2.
C1C2 C3C4C5C6 C7 25 ft. 50 ft. 45 ft. 25 ft. Hose #1Hose #2Hose #3Hose #4Hose #5Hose #6 Hose #3 Designated Busted Hose Designated Drop Area of Spare Hose.
Comments on: Firm Growth and Finance: Are Some Financial Institutions Better Suited to Early Stages of Development than Others? by Robert Cull and L. Colin.
Responding to the Threats: How training can help protect financial services businesses Martyn Oughton.
1 Market Efficiency in the Emerging Securitized Real Estate Markets Felix Schindler Centre for European Economic Research (ZEW) Milan, 26 th of June 2010.
1 Measuring Network Effects on Trade: Are Japanese Networks Distinctive? Theresa M. Greaney Department of Economics University of Hawai`i May 14-15, 2004.
Chapter 12 Bluffers and Market Manipulation. Bluffers & Market Manipulation Fool other traders into trading unwisely. Rumormongers spread rumors Price.
Financial Environment: FN6411 Summer 2004 Sris Chatterjee.
FINA2802, Spring 09 – Dr TangReview for Exam I FINA2802 Investments and Portfolio Analysis Spring, 2009 Dragon Tang Review for Exam I.
1 Stock Market Liquidity and Country Fundamentals Ser-Huang Poon Michael Rockinger Konstantinos Stathopoulos.
Perceptions of Management Issues in Biotechnology in Thailand A Presentation by Associate Prof. Siriyupa Roongrerngsuke, Ph. D. Sarote Phornprapha, Ph.D.
The Stock Market Forecasting and Risk Management System using Genetic Programming Li Wang Ross School of Business Ann Arbor, MI
Full Cost vs. Variable Cost
Instruments of Financial Markets at Studienzentrum Genrzensee Switzerland. August 30-September 17, 2004 Course attended by: Muhammad Arif Senior Joint.
FX Market Why is the FX Market Important?  The FX market 1.is used to convert the currency of one into the currency of another 2.provides some.
Globalization Day 9 Mini Lesson.  Students will identify purpose of G-20.  Students will explain issues surrounding currency wars and trade imbalances.
Methodological critic of “Resisting the Protectionist Temptation” by Helen Milner Designing Social Inquiry Ayoung Kang (32001)
Page 1 International Finance Lecture 1 Page 2 International Finance Course topics –Foundations of International Financial Management –World Financial.
1 1 The Signaling of Short Selling Activity in Australia.
The University of Hong Kong Short-Sales Constraints and Price Discovery: Evidence from the Hong Kong Market Eric C. CHANG and Yinghui YU The University.
Short Selling Bans and Institutional Investors' Herding Behavior: Evidence from the Global Financial Crisis Martin T. Bohl a, Arne C. Klein a and Pierre.
Globalization Pg Globalization Globalization – the process by which national economies, politics, cultures, and societies become integrated with.
HOW STABLE IS THE EURO? A.G. Malliaris Loyola University Chicago Society for Policy Modeling at the ASSA Annual Meetings Chicago, Illinois, January 6 -
Multinational Strategies Chapter 5, pages
A.G. Malliaris Loyola University Chicago Multinational Finance Society Meetings Rome, Italy, June 26-29, 2011 Contrarian and Momentum Strategies: The Impact.
Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings? ---Richard G.
The Promise of Different Types of Environmental Management Systems (EMSs) for Voluntary Governance Paper Prepared for presentation at Environmental Policy:
Unequal Compliance: The Global Trade Alert's Pre- G20 report Presentations in Washington DC June 2010 Prof. Simon J. Evenett
Unit 3: Strategies for success Operational strategies Resources Books Google video worksheet and answer sheet Worksheet table Student slide handout Astra.
Impact of Macro Indicators on Short Selling: Evidence from Tokyo Stock Exchange.
CASMEF seminars Discussion of : The Recapitalization of Banking and Insurance during the Credit Crisis Zeno Rotondi – Head of UniCredit Research.
ASSET BUBBLES AND THE FINANCIAL CRISIS OF 2008? A. G. MALLIARIS Presented to the Xavier EMBA, November 26, 2008 What are Asset Bubbles? Variety of Bubbles.
Import & Export Basics Memory Reed Harris County High School June 2008.
Ziedonis, Rosemarie H. Management Science, 50 (6):
LOYOLA UNIVERSITY CHICAGOQUINLAN SCHOOL OF BUSINESS FROM ASSET BUBBLES TO A LIQUIDITY TRAP Presented by A.G. Malliaris A Conference on the Global Financial.
Marie-Renée Bakker Lead Financial Sector Specialist World Bank Factoring Conference, Warsaw October 23-24, 2003 FACTORING AS A TOOL FOR SME DEVELOPMENT.
HOUSE PRICES, EXPECTATIONS, AND TIME-VARYING FUNDAMENTALS: DISCUSSION Presented by A.G. Malliaris AMERICAN ECONOMIC ASSOCIATION Allied Social Science Associations.
BOFIT, Suomen Pankki Comments on "The International Transmission of Shocks: Foreign Bank Branches in HongKong during Crises” by Simon Kwan, Eric.T.C. Wong.
Copyright ©2000, South-Western College Publishing International Economics By Robert J. Carbaugh 7th Edition Chapter 1: The international economy.
Challenges in WTO Accession —The case of Vietnam By Cristina Hernandez (UNDP-MPI Project VIE/02/009) World Bank Training Course “ Trade in Services and.
Stock Price Levels and Price Informativeness Konan Chan, Fengfei Li, Tse-Chun Lin, and Ji-Chai Lin Discussed by Tie Su University of Miami NTUICF.
CHAPTER 6 Introducing supply decisions ©McGraw-Hill Education, 2014.
0 Crisis? What crisis? Supertramp, 1975 Peter de Haas September 2008.
P.Aghion, T.Fally, S.Scarpetta Conference on Access to Finance, Wordlbank, March 15-16, Financial Constraints, Entry and Post-Entry Growth.
1 Global capital flows: overview UNCTAD short courses for delegates, September 2013, Palais des Nations. By Diana Barrowclough, Senior Economist Division.
Does Innovation stimulate employment? A firm-level analysis using comparable micro data from four European countries Harrison-Jaumandreu-Mairesse-Peters.
The Impact of the Financial Crisis on Tertiary Education Institutions Jamil Salmi OECD Conference June 2009.
Funding Growth Audrey Metayer – Commercial Manager, HSBC Charlotte England – International Relationship Director, HSBC.
The Alpha Team How to Construct a Global Portfolio After a Yield Curve Inversion.
Impact of the inter-firm cooperation on company's performance: major changes during the economic crisis November 27, 2013 Oksana Kabakova.
ILO DECLARATION ON SOCIAL JUSTICE FOR A FAIR GLOBALIZATION (SOCIAL JUSTICE DECLARATION) 2008 BUREAU FOR WORKERS’ ACTIVITIES ACTRAV.
1 SHORT SALE CONSTRAINTS IN THE US EQUITY MARKET AND THE TERM STRUCTURE OF INTEREST RATES. Abraham Lioui EDHEC Business School.
 What is investigated? Perceived importance of chartist and fundamentalist analysis among FOREX traders and financial journalists  Where? FOREX markets.
The foreign exchange market ( currency, forex, or FX ) trades currencies. It lets banks and other institutions easily buy and sell currencies.
Katrin Simon-Elorz1, J.Sebastián Castillo-Valero 2
Banks, Government Bonds and Default: what do the data say?
Chapter 7 The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis.
The effects of macroprudential policies on house prices: Evidence from an event study using Korean real transaction data Journal of Financial Stability.
Influencing the Adoption of
ITRN 504: Microeconomics and Trade
Import & Export Basics Memory Reed Harris County High School June 2008.
Daliutė Kavaliauskienė Statistics Lithuania
How a Financial Crisis Affects Data Mining Results: A Case Study
The Impact of the Financial Crisis on Tertiary Education Institutions
Global Monetary Instability and the Role of the Financial Crisis
ITRN 504: Microeconomics and Trade
Presentation transcript:

Are Short Sellers Positive Feedback Traders? Discussion A.G. Malliaris, Quinlan School of Business Loyola University Chicago Multinational Finance Conference, Krakow, June 24-27, 2012

Background Role of Short Sellers: Do they stabilize or destabilize markets? Are Short Sellers Smart? Fundamentalists? How Should Regulators Respond?

Purpose of this Paper Investigate Short Selling Regimes During the Global Financial Crisis Why is this Interesting? What is the Role of the Crisis? Regulators imposed bans on Short Sales This Allows to test the impact of such bans: did the bans stabilize or not the markets?

Methodology One equation model with Fundamental traders and Feedback traders Introduce a Dummy variable equal to 1 is short sales are restricted and 0 otherwise. Examine feedback trading Examine Conditional Variance Nice sample of daily data of financial firms in 6 countries

Results and Comments Bans of Short Selling are Ineffective, i.e. bans do not stabilize markets C1: What about individual differences among US, UK, Germany vs. France, S. Korea and Australia? C2: How to control for the magnitude of short selling? C3: As always we have joint testing: Market efficiency during a crisis?

Comments C4: During a crisis with a ban on some sector how options and futures markets behave? C5: If Short sellers are fundamentalist and restricted what other strategies do they follow? C6: Can we claim that banned short sellers do not act as feedback technical traders? C7: Nice paper that challenges us to develop a comprehensive hypothesis about short selling