Journalartikel

Autorenliste: Bannier, CE

Jahr der Veröffentlichung: 2005

Seiten: 1517-1531

Zeitschrift: Journal of Monetary Economics

Bandnummer: 52

Heftnummer: 8

ISSN: 0304-3932

eISSN: 1873-1295

DOI Link: https://doi.org/10.1016/j.jmoneco.2004.09.005

Verlag: Elsevier

Abstract: 

Market participants often suspect that large traders have a disproportionate effect on financial markets, increasing the aggressiveness of market responses. Prior studies have shown that the impact of a large trader on a currency crisis depends positively on his "size" and informational position. By contrast, this article highlights the role that market sentiment has on the impact of a large trader. If the market believes that fundamentals are weak, then the probability of a crisis depends positively on the trader's size but negatively on the precision of his information, with these effects reversed in a generally optimistic market. A large player, therefore, need not make market responses more aggressive.

Harvard-Zitierstil: Bannier, C. (2005) Big elephants in small ponds: Do large traders make financial markets more aggressive?, Journal of Monetary Economics, 52(8), pp. 1517-1531. https://doi.org/10.1016/j.jmoneco.2004.09.005

APA-Zitierstil: Bannier, C. (2005). Big elephants in small ponds: Do large traders make financial markets more aggressive?. Journal of Monetary Economics. 52(8), 1517-1531. https://doi.org/10.1016/j.jmoneco.2004.09.005