DocumentCode
2968487
Title
Stock Price Synchronicity and Limited Arbitrage
Author
Wang, Bingbing ; Xia, Xinping ; Xiao, Hao
Author_Institution
Sch. of Manage., Huazhong Univ. of Sci. & Technol., Wuhan, China
fYear
2011
fDate
12-14 Aug. 2011
Firstpage
1
Lastpage
4
Abstract
A new view of limited arbitrage is applied in the study of the reasons of stock price synchronicity in China based on the behavioral finance theory. This paper made an explorary study about the relation between limited arbitrage, stock price synchronicity and market efficiency. A conclusion different from the study about cash stock dividends in foreign countries is derived that cash dividends as a tunnel of dominant strockholders increase the holding cost of arbitragers, and affect stock price synchronicity, leading to low market efficiency.
Keywords
pricing; stock markets; China; arbitrager holding cost; behavioral finance; cash stock dividends; limited arbitrage; market efficiency; stock price synchronicity; Companies; Economics; Finance; Fluctuations; Indexes; Industries; Pricing;
fLanguage
English
Publisher
ieee
Conference_Titel
Management and Service Science (MASS), 2011 International Conference on
Conference_Location
Wuhan
Print_ISBN
978-1-4244-6579-8
Type
conf
DOI
10.1109/ICMSS.2011.5998464
Filename
5998464
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