How does public information affect the frequency of trading in airline stocks?

B-Tier
Journal: Journal of Banking & Finance
Year: 2014
Volume: 44
Issue: C
Pages: 26-38

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper examines how firm specific and macroeconomic announcements affect transaction rates in U.S. airline stocks. Using a version of the autoregressive conditional hazard framework of Hamilton and Jordà (2002) that incorporates market microstructure variables, we show that on average, trading intensity spikes prior and consequent to macroeconomic announcements, but decreases around firm-specific releases. Further, when we use intraday crude oil futures returns as a proxy for industry relevant and globally important news we find that their effects are statistically significant, with higher oil futures returns increasing the probability of trade.

Technical Details

RePEc Handle
repec:eee:jbfina:v:44:y:2014:i:c:p:26-38
Journal Field
Finance
Author Count
2
Added to Database
2026-01-24