Analyzing Stock Brokers’ Trading Patterns: A Network Decomposition and Spatial Econometrics Approach
Joint Authors
Lavin, Jaime F.
Eberhard, Juan
Montecinos-Pearce, Alejandro
Arenas, José
Source
Issue
Vol. 2019, Issue 2019 (31 Dec. 2019), pp.1-18, 18 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2019-07-25
Country of Publication
Egypt
No. of Pages
18
Main Subjects
Abstract EN
Using a unique data set with all the daily transactions from the Santiago Stock Exchange, we develop a novel methodology that combines a network decomposition with a spatial econometrics technique to study how brokers’ characteristics and trading decisions may affect the stock market return.
We present suggestive evidence of a mechanism by which structural changes of the transaction network between brokers affect the aggregate returns of the stock market.
We find that brokers tend to trade with counterparties with dissimilar intraday selling volume when market return significantly increases.
Moreover, brokers with a research department tend to sell to brokers without a research department when the market experiences a considerable increase of its return.
From the financial perspective, these results highlight new ways in which intermediaries may affect market equilibrium and the efficiency of the market.
American Psychological Association (APA)
Eberhard, Juan& Lavin, Jaime F.& Montecinos-Pearce, Alejandro& Arenas, José. 2019. Analyzing Stock Brokers’ Trading Patterns: A Network Decomposition and Spatial Econometrics Approach. Complexity،Vol. 2019, no. 2019, pp.1-18.
https://search.emarefa.net/detail/BIM-1132715
Modern Language Association (MLA)
Eberhard, Juan…[et al.]. Analyzing Stock Brokers’ Trading Patterns: A Network Decomposition and Spatial Econometrics Approach. Complexity No. 2019 (2019), pp.1-18.
https://search.emarefa.net/detail/BIM-1132715
American Medical Association (AMA)
Eberhard, Juan& Lavin, Jaime F.& Montecinos-Pearce, Alejandro& Arenas, José. Analyzing Stock Brokers’ Trading Patterns: A Network Decomposition and Spatial Econometrics Approach. Complexity. 2019. Vol. 2019, no. 2019, pp.1-18.
https://search.emarefa.net/detail/BIM-1132715
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1132715