We evaluate the impact of stock market transparency and opacity design features on global trading activity, including the share of traded value for cross-listed stocks. Our methodology relies on a system of simultaneous structural equations estimated for the world's major exchanges. We find that...

The home bias in international portfolios has been explained by foreign investors' exposure to more severe moral hazard problems than domestic investors. A drop in expected returns will increase the likelihood of these hazards, causing foreign investors to react more strongly to profit warnings...

Crossed and internalised upstairs trades are analysed in a data set in which institutional investors can be identified. Earlier findings that upstairs trading is uninformed, tap into unexpressed liquidity and do not affect market quality are revisited. The permanent price effect of crossings and...

This study re-examines the dual issue of international investor trading patterns and the performance that is subsequently generated. An information disadvantage amongst foreign investors could explain the home bias puzzle. Domestic investors follow contrarian patterns and foreign investors...

Existing strategic behaviour models indicate that the strategic interaction of informed and liquidity traders leads to systematic intraday patterns on stock exchanges. This paper uses a unique database from the Helsinki Stock Exchange, which allows the parties of all trades to be identified so...

Following other leading international securities markets, the Tokyo stock exchange [TSE] has adopted a publicly displayed but anonymous limit order book, and we ask: how is market quality affected? Accounting for fixed effects and endogeneity, we find increased volatility and higher order book...

Crossed and internalized upstairs trades are analysed in a dataset in which institutional investors can be identified. Earlier findings that upstairs trading is uninformed, taps into unexpressed liquidity, and does not affect market quality are revisited. The permanent price effect of crossings...

Owners of firms in trouble are more exposed to moral hazard problems than owners of successful firms. Foreign owners who face higher costs to monitor the firm should be more vulnerable to these problems than domestic ones. Consequently, a downward revision in a firm's expected future earnings...

We present institutional features of the Nordic initial public offering (IPO) markets and relate initial return, long-run performance and size of companies listed during 1991-2002 to industry clustering and level of listing requirements. High industry clustering is related to higher initial...