Sabina Pandey PhD, CFP (Department of Finance, Banking, andInsurance, Walker College of Business,Appalachian State University, Boone,North Carolina, USA)
Michael Guillemette PhD, CFP (School of Financial Planning, Texas TechUniversity, Lubbock, Texas, USA)
Sarah Asebedo PhD, CFP (School of Financial Planning, Texas TechUniversity, Lubbock, Texas, USA)
Published in Financial Planning Review
Using nationally representative data from the 2021 National Financial Capability Study (NFCS), this study investigates the association between human capital, as proxied through education and objective financial knowledge, and stimulus payment usage for spending, debt repayment, savings, and investments during the COVID-19 pandemic. The results from a sample of 23,344observations suggest that human capital relates to differences in how people used their COVID-19 stimulus payments. In particular, the study found that human capital is associated positively with using stimulus payments to add to savings or invest in the stock market.
Justin S. Cox (Department of Finance, Banking, and Insurance, Walker College of Business, Appalachian State University, Boone, North Carolina, USA)
Todd G. Griffith (Department of Economics and Finance, Jon M. Huntsman School of Business, Utah State University, Logan, Utah, USA)
Robert A. Van Ness (Finance Department, School of Business, University of Mississippi, University, Mississippi, USA)
Published in The Journal of Financial Research
We examine whether the different fee structures on equity exchanges, maker-taker or taker-maker, affects the frequency with which security prices cluster on round increments. We find higher price clustering on traditional maker-taker venues relative to inverted taker-maker venues. These results generally hold at the individual exchange level and across transaction- and quotation-level clustering measures. Furthermore, we document that quoted depth, both inside and outside the best prices, is significantly greater on maker-taker venues than on taker-maker venues. We show that liquidity supply is the main economic driver behind the difference in price clustering between market structures. Our findings indicate that fees and rebates alter order-routing strategies, which affect the precision of asset prices.
Ruwan Adikaram (University of Minnesota Duluth, Duluth, Minnesota, USA)
Alex Holcomb (Appalachian State University, Boone, North Carolina, USA)
Published in International Journal of Bank Marketing
In this study, the authors investigate if analysts, as knowledgeable information intermediaries, can correctly identify bank corporate social responsibility (CSR) activities and can reliably transmit that information to investors. Hence, the authors specifically explore if analysts perceive and behave differentially in the presence of genuine bank CSR activities (strengths). The authors also analyze if financial markets differentially assess bank CSR strengths. The authors further explore the viability of focusing on analyst and financial markets to validate genuine bank CSR strengths.
Benjamin M. Blau (Department of Economics and Finance in the Jon M. Huntsman School of Business at Utah State University, 3565 Old Main Hill, Logan, UT, 84322, USA)
Justin S. Cox (Department of Finance, Banking, And Insurance in the Walker College of Business at Appalachian State University, Boone, NC, 28607, USA)
Todd G. Griffith (Department of Economics and Finance in the Jon M. Huntsman School of Business at Utah State University, 3565 Old Main Hill, Logan, UT, 84322, USA)
Ryan Voges (Department of Finance in David Eccles School of Business at the University of Utah, 1655 East Campus Center Drive, Salt Lake City, UT, 84112, USA)
Published in Journal of Financial Markets
We examine prices and daily short selling activity around reverse stock splits using a difference-in-difference identification strategy. The results show negative returns for treatment stocks, relative to control stocks, around reverse splits. Additionally, short selling increases for treatment stocks vis-à-vis control stocks in the days after the reverse split announcements, but not before. Moreover, short selling on reverse split announcement and effective dates does not appear to contain more information about future negative returns than usual. Together, the results indicate that reverse stock splits attract short sellers’ attention, but that they are no more informed around these events than normal.
Justin Cox (Appalachian State University, Boone, North Carolina, USA)
Kathleen P. Fuller (University of Mississippi, Oxford, Mississippi, USA)
Robert Van Ness (University of Mississippi, Oxford, Mississippi, USA)
Published in The Finacial Review
We examine the fragmentation of trading around the ex-dividend date. We argue that the taker-maker and dark trading venues provide potential dividend capture traders a more favorable platform than the maker-taker venue(s) given the price improvement, lower queues, and lower net transaction costs. Our evidence indicates that taker-maker (dark) venue market share decreases (increases) on cum-dividend days but reverts to normal levels on the ex-dividend day. Additionally, we find fragmented trading impacts the ex-dividend price change and improves price efficiency. Finally, we find evidence that retail trades are associated with potential dividend-capture trading.