Work

How broker ability affects institutional trading costs

Year: 2005

Type: article

Abstract: The present paper shows that broker research and trade execution ability has a significant impact on the cost of institutional trading. The results reveal that there is significant variation in the ability of brokers to control execution costs. Trades executed by brokers with stronger research ability exhibit a higher permanent price impact, whereas those executed by brokers with better execution ability exhibit a lower temporary price impact. Brokers are also found to specialize on an industry level that gives rise to variation in ability within a brokerage house.

Source: Accounting and Finance

DOI: 10.1111/j.1467-629x.2005.00139.x

Authors: Carole Comerton‐Forde, Christian Fernandez, Alex Frino, Teddy Oetomo

Institution: The University of Sydney

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3124045486

FWCI: 0.57

Cites: 36

Cited by: 18

Related to: 10