Brokers and Order Flow Leakage: Evidence from Fire Sales
نویسندگان
چکیده
منابع مشابه
Fire Sales and House Prices: Evidence from Estate Sales Due to Sudden Death
This study investigates when forced sales turn into fire sales by using a natural experiment which allows us to separate supply and demand effects: Forced sales result from sudden death of house owners and are thus unrelated to current market conditions. We find that forced sales result in fire sale discounts. Discounts increase when the sale is urgent, market conditions are poor, the seller is...
متن کاملCournot Fire Sales
In standardWalrasian macro-finance models, pecuniary externalities such as fire sales lead to overinvestment in illiquid assets or underprovision of liquidity. We investigate whether imperfect competition (Cournot) improves welfare through internalizing the externality and find that this is far from guaranteed. In a standard model of liquidity shocks, when liquidity is sufficiently scarce, Cour...
متن کاملFire Sales and Endogenous Volatility
After the collapse of the housing bubble in 2007, severe fire sales of assets in the financial sector are accompanied by a rise in the volatility of asset returns in the non-financial firms. To account for their co-movements, I develop a model that highlights the interaction between the financial health of the banking sector and the volatility of asset returns. The novel feature of the model is...
متن کاملEvidence on Asset Sales and Income Management: Case of Iran
This study empirically examines whether managers manipulate reported income through the timing of sales of long-lived assets and investments. Several empirical implications of the income-smoothing and debt-equity hypothesis in the context of asset sales were tested. The findings are consistent with the timing of asset sales by managers so that the recognized accounting income from these sales s...
متن کاملFire Sales, Foreign Entry and Bank Liquidity1
Bank liquidity is a crucial determinant of the severity of banking crises. In this paper, we consider the e¤ect of re sales and foreign entry on banksex ante choice of liquid asset holdings, and the ex post resolution of crises. In a setting with limited pledgeability of risky cash ows and di¤erential expertise between banks and outsiders in employing banking assets, the market for assets cl...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2017
ISSN: 1556-5068
DOI: 10.2139/ssrn.3079690