Dr. Thomas McInish Published in Applied Economics

For release:  May 21, 2015

Dr. Thomas McInish, professor of the Department of Finance, Insurance and Real Estate and the holder of the Chair of Excellence, had his paper, "Price Movement and Trade Size on the National Stock Exchange of India," published in Applied Economics Journal. The paper was coauthored with Dr. Ajay Mishra, former FCBE visiting academic scholar, and Dr. Trilochan Tripathy, Indian Business School.

In this paper, McInish examined three hypotheses about which trades move prices. One of the hypotheses, The Stealth Trading Hypothesis, proposed that cumulative price changes (CPCs) are concentrated in particular trade sizes due to the strategic trading of informed traders. He found that depending on market conditions, from 60% to 80% of the CPC is concentrated in small trade sizes with almost all of the remaining price change concentrated in medium trade sizes. These results supported the Stealth Trading Hypothesis.