1 Introduction</h5> Recent years have witnessed a sea change in trading technologies and the costs of transacting in capital markets. Chakravarty et al. (2005) and French (2008) document the significant decline in institutional commissions. Technology has facilitated algorithmic trading ( Hendershott et al., 2011 ) and hedge funds have proliferated. The improvements in trading technology and liquidity are dramatic and quite unprecedented. 1 1 In its more than 200 year history, the New York Stock Exchange (NYSE) has reduced the tick size only twice: from 8th to 16th in June 1997 and from 16th to penny in January 2001. Technological improvements have allowed the NYSE to accommodate a dramatic increase in trading volumes. Jones (2002) and Chordia et al. (2001) show that standard measures of illiquidity such as bid-ask spreads have decreased substantially over time. Chordia, Roll and Subrahmanyam (CRS) (2011) show that these phenomena have been accompanied by an explosion in trading volume; the monthly, value-weighted average share turnover on the NYSE increased from 5% in 1993 to 35% in 2008, whereas it was virtually unchanged in the 1970s and 1980s. CRS also present evidence that it is institutional trading volume that accounts for this increase and
Journal of Accounting and Economics – Elsevier
Published: Aug 1, 2014
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera