We propose that solar activities are related to investor sentiment and stock market crashes. We find that the number of sunspots is significantly and negatively associated with the frequency and severity of market crashes. Adopting structural equation modeling and using traditional sentiment...

Hedging the risk of holding undesired inventory is very important for market makers. However, prior studies seldom capture the role of inventory positions in measuring hedging costs. This study measures hedging costs directly using data on inventory positions of market makers in the Taiwan Index...

This article focuses on the information effects between the futures market and its spot market. Intraday data are used to investigate the lead-lag relationships between the returns and trading activity of Taiwan stock index futures and the spot returns. We focus on the transmission direction and...