Market Maker unter Wolken – Wettereffekte am deutschen Aktienmarkt
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Market Maker unter Wolken – Wettereffekte am deutschen Aktienmarkt
Flemisch, Marcus | Hackethal, Andreas | Schiereck, Dirk
Credit and Capital Markets – Kredit und Kapital, Vol. 42 (2009), Iss. 3 : pp. 413–433
2 Citations (CrossRef)
Additional Information
Article Details
Author Details
Dr. Marcus Flemisch, Dresdner Kleinwort, Theodor-Heuss-Allee 44–46, D-60486 Frankfurt/M.
Prof. Dr. Andreas Hackethal, Johann Wolfgang Goethe-Universität Frankfurt am Main, Lehrstuhl für BWL, insbesondere Finanzen, House of Finance – Grüneburgplatz 1, D-60323 Frankfurt/M.
Prof. Dr. Dirk Schiereck, Technische Universität Darmstadt, Institut für BWL, Unternehmensfinanzierung, Hochschulstraße 1, D-64289 Darmstadt.
Cited By
-
The public environmental awareness and the air pollution effect in Chinese stock market
He, Xubiao | Liu, YiJournal of Cleaner Production, Vol. 185 (2018), Iss. P.446
https://doi.org/10.1016/j.jclepro.2018.02.294 [Citations: 61] -
Does screen trading weather the weather? A note on cloudy skies, liquidity, and computerized stock markets
Goodfellow, Christiane | Schiereck, Dirk | Verrier, TatjanaInternational Review of Financial Analysis, Vol. 19 (2010), Iss. 2 P.77
https://doi.org/10.1016/j.irfa.2010.01.009 [Citations: 5]
Abstract
Market Makers Cloud-Covered – Weather Effects in the German Stock Market
It is known from the literature on the psychology of modes of behavior in stock markets that – besides other parameters – moods and emotions as personal influencing factors affect yield expectations and the risk-awareness of market participants. The constructs that may influence moods include the weather as well. Studies of the US market show that the yields recorded by the New York Stock Exchange correlate in a negative sense with the population density. By way of explanation, mention has been made of market makers' bid/offer spread fixing behaviour for which systematic correlations with the weather have been observed.
So far, no studies have hitherto been made of the influence of the weather on the bid/offer spread fixing behaviour of market makers in the German capital market. There are plans to close this knowledge gap insofar as stocks are concerned listed by the German electronic trading system Xetra, for each of which just one designated sponsor acts as a market maker. It has turned out in this context that a systematic weather effect is to be observed in Germany as well, though with a surprising operating sign.