Work

Informed and Uninformed Trading in an Electronic, Order‐Driven Environment

Year: 2000

Type: article

Abstract: The purpose of our study is to investigate the trading behavior of informed and uninformed investors in a screen‐based, order‐driven environment. As more and more exchanges conduct trading through electronic limit‐order books, it is increasingly important to analyze consequent trading behavior and its impact on the liquidity provision process. We examine one of the largest electronic, order‐driven markets in the world, the Stock Exchange of Hong Kong. Our findings show that the interaction of informed and uninformed traders plays a significant role in determining corporate liquidity.

Source: Financial Review

DOI: 10.1111/j.1540-6288.2000.tb01417.x

Authors: Paul Brockman, Dennis Y. Chung

Institution: Hong Kong Polytechnic University

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2084664730

FWCI: 2.743

Cites: 27

Cited by: 60

Related to: 10