Dr. McInish's and Dr. Jain's articles cited as most influential publications

For release: February 15, 2016

Dr. Thomas Mcinish's article "Stealth trading: the case of the Tokyo Stock Exchange" and Dr. P.K. Jain's article "State ownership and bank equity in the Asia-Pacific region" were published in the Pacific Basin Finance Journal in 2011 and 2013, respectively. They are now renowned as two of the most influential publications on future research agendas on the emerging trends in Asia-Pacific finance research. A 2016 Elsevier publication scientifically ranked the top 50 most influential publications among 667 journal articles published in the Asia-Pacific finance literature from 2011 to 2015. The goal of the Elsevier publication is to highlight possible pathways for researchers to build on existing knowledge and pursue opportunities for innovative and exciting new research contributing to an expansion of the research frontiers.

Dr. Thomas McInish, Wunderlich Chair of Excellence and professor of Finance, co-authored his article with Dr. Asli Ascioglu, a former FCBE Ph.D. student and current faculty member at Bryant University, and Dr. Carole Comerton-Forde, University of Sydney. Using data for the Tokyo Stock Exchange, a pure order-driven market, they find evidence to support the stealth trading hypothesis that cumulative price changes are due to medium-size trades. However, they also find that small trades contribute significantly to cumulative price changes by separately considering positive and negative price changes. They also find that larger trades explain a greater portion of the cumulative price change on high volatility days, when stealth trading is more difficult, forcing informed traders to trade more quickly using larger trades.

Dr. P.K. Jain, interim chair of the Department of Finance, co-authored his article with Dr. Mahmud Hossain, Gulf University of Science and Technology, and Dr. Santanu Mitra, Wayne State University. They examine the effectiveness of worldwide banking regulations and government involvement in providing a balanced risk–reward trade-off to bank shareholders during both normal times and the periods of financial crisis. Ownership structure varies across world regions with government holding bigger stakes in the Asia-Pacific region and Latin America than in North America. Partial state ownership of banks, particularly in the Asia-Pacific region, helped avoid sharp losses during financial crises without sacrificing returns in normal periods. The restrictions on the types of activities reduce bank riskiness and wealth losses during the crisis period but they also stifle innovations and returns during normal times.