Economics at your fingertips  

Trading Halts and Price Informativeness

Crocker Herbert Liu, Charles Trzcinka and Ziwei Zhao
Additional contact information
Crocker Herbert Liu: Cornell University
Charles Trzcinka: Indiana University
Ziwei Zhao: University of Lausanne; Swiss Finance Institute

No 23-62, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: Chinese firms can initiate trading halts. While many plausible reasons exist for halts to occur after a price decline: 42% of halts come after a 7-day price rise. We argue the only reason for halts after a price rise is to increase management information. We find that our measures of private information are negatively associated with the likelihood of a halt. However, halts increase the cost of capital by 121 basis points. We show that price non-synchronicity, institutional ownership, and accounting variables predict a trading halt and explain the positive CARs after a halt.

Keywords: trading; halts; fundamentals; noise traders; liquidity (search for similar items in EconPapers)
JEL-codes: E44 G12 G14 N20 O16 O53 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2023-08
New Economics Papers: this item is included in nep-ifn and nep-mst
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Swiss Finance Institute Research Paper Series from Swiss Finance Institute Contact information at EDIRC.
Bibliographic data for series maintained by Ridima Mittal ().

Page updated 2023-11-16
Handle: RePEc:chf:rpseri:rp2362