Noise traders and herding behavior.
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Noise traders and herding behavior.

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Published by International Monetary Fund in Washington, D.C .
Written in English


Book details:

Edition Notes

Includes bibliographical references.

SeriesIMF working paper -- WP/96/104
ContributionsInternational Monetary Fund.
The Physical Object
Pagination15 p. ;
Number of Pages15
ID Numbers
Open LibraryOL16765147M

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This paper describes models of imperfect liquidity and improperly processed information in financial markets, focusing on the noise trader and investor herding literature. The motivations for this line of research are presented, followed by a description of some of the major contributions and tests of some of their empirical implications. Noise traders and herding behavior. [Lee Scott Redding; International Monetary Fund. Research Department,] -- AnnotationRecent developments in financial economics have included many explorations into market microstructure, that is, the internal .   Noise Traders and Herding Behavior. Author/Editor: Lee Scott Redding. focusing on the noise trader and investor herding literature. The motivations for this line of research are presented, followed by a description of some of the major contributions and tests of Author: Lee Scott Redding. This paper describes models of imperfect liquidity and improperly processed information in financial markets, focusing on the noise trader and investor herding literature. The motivations for this line of research are presented, followed by a description of some of the major contributions and tests of some of their empirical by: 8.

Noise Traders and Herding Behavior. focusing on the noise trader and investor herding literature. The motivations for this line of research are presented, followed by a description of some of the major contributions and tests of some of their empirical : Lee Scott Redding. high-frequency herding measures and trading noise in a call auction market. We find that institutional investors are likely to be informed traders and herd rationally based on superior information. Institutional investors’ herding has a negative impact on trading noise. Their buy (sell) herding predicts positive (negative) future market by: 6. Noise Traders and the Law of One Price. Book Editor(s): Edwin T. Burton. Search for more papers by this author. Sunit N. Shah and dealing with what is earlier referred to as the noise trader agenda, could enable the existence of noise traders to pose a challenge to . Noise trader is generally a term used to describe investors who make decisions regarding buy and sell trades without the support of professional advice or advanced fundamental : Gordon Scott, CMT.

The herding behavior is a microstructural situation emerging the volatility clustering and the leptokurtic of the distribution of return [2]. Focusing to the traders’ observation to the order book, we can obviously say that the psychological image of the order book imbalance can also lead to the herding behavior. As imbalance of the order. Herding, Trend Chasing and Market Volatility. and noise traders. the herding behavior model of individual stocks towards market consensus has been referring to CAPM theory. The basic. Traders are found to be indifferent to important stock categories in their herd behavior. Further analysis suggests that the correlated behavior of Saudi traders is unlikely to be induced by the. The Handbook of Investors' Behavior during Financial Crises provides fundamental information about investor behavior during turbulent periods, such the dot com crash and the global financial crisis. Contributors share the same behavioral finance tools and techniques while analyzing behaviors across a variety of market structures and.