Showing 1 - 10 of 13,703
Persistent link: https://www.econbiz.de/10011927920
Using a database of daily institutional trades, we document that a majority of short-term institutional trades lose money. In aggregate, over 23% of round-trip trades are held for less than three months, and the returns on these trades average -3.91% (non-annualized). These losses are pervasive...
Persistent link: https://www.econbiz.de/10013007685
Persistent link: https://www.econbiz.de/10002743706
Recent theories argue for governance through trading, which I call "grading", as an alternative governance mechanism to direct intervention (voice). Grading is the mechanism in which higher trading impounds new information into the price, pushing it toward its fundamental value, thus inducing...
Persistent link: https://www.econbiz.de/10014200879
Persistent link: https://www.econbiz.de/10014433823
Persistent link: https://www.econbiz.de/10002181286
Persistent link: https://www.econbiz.de/10011644829
While the trade channel indicates that an exchange rate depreciation will stimulate domestic economic activity, the financial channel can have the opposite effect. When banks and non-banks have foreign currency liabilities, an exchange rate depreciation has valuation effects that can lead to a...
Persistent link: https://www.econbiz.de/10012977169
Persistent link: https://www.econbiz.de/10013346574
Following the well-known approach by Adler and Dumas (1984) we evaluate the foreign exchange rate exposure of nations. Results based on data from 27 countries show that national foreign exchange rate exposures are significantly related to the current trade balance variables of corresponding...
Persistent link: https://www.econbiz.de/10003412063