Do inventories matter in dealership markets? Evidence from the London Stock Exchange
Publication
, Journal Article
Hansch, O; Naik, NY; Viswanathan, S
Published in: Journal of Finance
January 1, 1998
Using London Stock Exchange data, we test the central implication of the canonical model of Ho and Stoll (1983) that relative inventory differences determine dealer behavior. We find that relative inventories explain which dealers obtain large trades and show that movements between best ask, best bid, and straddle are highly correlated with both standardized and relative inventory changes. We show that the mean reversion in inventories is highly nonlinear and increasing in inventory levels. We show that a key determinant of variations in interdealer trading is inventories and that interdealer trading plays an important role in managing large inventory positions.
Duke Scholars
Altmetric Attention Stats
Dimensions Citation Stats
Published In
Journal of Finance
DOI
ISSN
0022-1082
Publication Date
January 1, 1998
Volume
53
Issue
5
Start / End Page
1623 / 1656
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
Citation
APA
Chicago
ICMJE
MLA
NLM
Hansch, O., Naik, N. Y., & Viswanathan, S. (1998). Do inventories matter in dealership markets? Evidence from the London Stock Exchange. Journal of Finance, 53(5), 1623–1656. https://doi.org/10.1111/0022-1082.00067
Hansch, O., N. Y. Naik, and S. Viswanathan. “Do inventories matter in dealership markets? Evidence from the London Stock Exchange.” Journal of Finance 53, no. 5 (January 1, 1998): 1623–56. https://doi.org/10.1111/0022-1082.00067.
Hansch O, Naik NY, Viswanathan S. Do inventories matter in dealership markets? Evidence from the London Stock Exchange. Journal of Finance. 1998 Jan 1;53(5):1623–56.
Hansch, O., et al. “Do inventories matter in dealership markets? Evidence from the London Stock Exchange.” Journal of Finance, vol. 53, no. 5, Jan. 1998, pp. 1623–56. Scopus, doi:10.1111/0022-1082.00067.
Hansch O, Naik NY, Viswanathan S. Do inventories matter in dealership markets? Evidence from the London Stock Exchange. Journal of Finance. 1998 Jan 1;53(5):1623–1656.
Published In
Journal of Finance
DOI
ISSN
0022-1082
Publication Date
January 1, 1998
Volume
53
Issue
5
Start / End Page
1623 / 1656
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment