Price Clustering and Price Barriers: International Evidence
In this paper, I try to complement the existing literature by empirically examining the effect of price clustering and price barriers based on the international stock market. Evidence suggests that a strong effect of clustering and barriers is observed on last digit 0. Such effect is not robust and...
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| Format: | Article |
| Language: | English |
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Sciendo
2014-12-01
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| Series: | Nang Yan Business Journal |
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| Online Access: | http://www.degruyter.com/view/j/nybj.2014.3.issue-1/nybj-2015-0001/nybj-2015-0001.xml?format=INT |
| Summary: | In this paper, I try to complement the existing literature by empirically examining the effect of price clustering and price barriers based on the international stock market. Evidence suggests that a strong effect of clustering and barriers is observed on last digit 0. Such effect is not robust and persistent on last digit 5. In addition, the cross-country analysis shows that price clustering and barriers become intensified in countries with a more transparent and open environment. |
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| ISSN: | 2307-4450 |