Open AccessThe Efficiency of Trading Halts: Emerging Market Evidence
Author(s) -
Obiyathulla Ismath Bacha,
Mohamed Eskandar S. A. Rashid,
Roslily Ramlee
Publication year - 2008
Publication title -
s and p : sound and pictures
Language(s) - English
Resource type - Journals
ISSN - 1675-722X
DOI - 10.32890/ijbf2008.5.2.8372
Subject(s) - volatility (finance) , warrant , monetary economics , economics , business , financial economics
This paper reports new findings on the price effect from trading halts - both voluntary and mandatory - over 2000-04 in an emerging share market, Malaysia. Based on our overall sample, trading halts lead to positive price reaction, increased volume, and increased volatility. We found evidence of information leakage resulting in a significant difference between voluntary and mandatory halts as well as the type of news released during halts to warrant such an impact. The duration of the halt has an isolated impact and is largely inconsequential. The frequency of halts does not seem to matter.