Working capital management is an essential part of the short-term finance of a firm. With an efficient working capital management, a firm can release capital for more strategic objectives, reduce the financial costs, and improve profitability. The present research studies the relationship of working capital management on performance of firms Listed in Tehran Stock Exchange (TSE). Average Collec...

The allocation of order flow to alternative trading systems can be understood as a game with strategic substitutes between buyers on the same side of the market, as well as one of positive network externalities. We consider the allocation of order flow between a crossing network and a dealer market and show that small differences in traders’ preferences generate a unique switching equilibrium, ...

This paper tries to find a widely accessible measure of liquidity and studies its impact on asset pricing. Using trading turnover as a measure of liquidity and the 19761993 Tokyo Stock Exchange data, I find that, cross-sectionally, stocks with higher turnover tend to have a lower expected return. This evidence is consistent with predictions derived from an Amihud-Mendelson type of transaction c...

The tightening of the European Union climate and energy policy, directed to raising the resilience and effectiveness of the European Union Emissions Trading System, may influence on companies' economic performance. Polish energy companies, which mainly use coal in the energy production process, are particularly worried about the potential negative consequences associated with the implementation...

This paper applies the newly developed methodology of Bai and Ng (2002, 2003), providing the decomposition of large panel data into systematic and idiosyncratic components, to both returns and turnover. When combined with a GLS-based principal components approach, we demonstrate their procedure works well for both returns and turnover, despite the presence of severe heteroscedasticity and non-s...

We examine the implications of portfolio theory for the cross-sectional behavior of equity trading volume. Two-fund separation theorems suggest a natural definition for trading activity: share turnover. If two-fund separation holds, share turnover must be identical for all securities. If (K + 1)-fund separation holds, we show that turnover satisfies an approximately linear K-factor structure. T...

This study investigates the algorithm of effective option trading strategy based on the superior volatility forecasts using actual option price data in Taiwan stock market. Forecast evaluation supports the significant incremental explanatory power of investor sentiments on the fitting and forecasting of future volatility to its adversarial multiple-factor model, especially the market turnover a...

working capital management is an essential part of the short-term finance of a firm. with an efficient working capital management, a firm can release capital for more strategic objectives, reduce the financial costs, and improve profitability. the present research studies the relationship of working capital management on performance of firms listed in tehran stock exchange (tse). average collec...

Empirical studies have analyzed how investors trade and perform in the financial markets. The studies show that rational trading needs do not explain the excessive manner of trading shown by the investors. Theoretical models offer overconfidence as one of the explanations for irrational trading behavior. Overconfidence is a psychological trait, argued to cause the investors to misinterpret usef...

While there is an extensive literature, both theoretical and empirical, on determining optimal asset ratios for funds with alternative objectives, little has been written about an equally-important aspect of money management: how to implement these strategies optimally in the presence of transactions costs and capital gains taxes. Yet trading to implement investment objectives is regularly done...