Cargando…

Structure of Investor Networks and Financial Crises

In this paper, we ask whether the structure of investor networks, estimated using shareholder registration data, is abnormal during a financial crises. We answer this question by analyzing the structure of investor networks through several most prominent global network features. The networks are est...

Descripción completa

Detalles Bibliográficos
Autores principales: Baltakys, Kęstutis, Le Viet, Hung, Kanniainen, Juho
Formato: Online Artículo Texto
Lenguaje:English
Publicado: MDPI 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8063838/
https://www.ncbi.nlm.nih.gov/pubmed/33804826
http://dx.doi.org/10.3390/e23040381
_version_ 1783682019409002496
author Baltakys, Kęstutis
Le Viet, Hung
Kanniainen, Juho
author_facet Baltakys, Kęstutis
Le Viet, Hung
Kanniainen, Juho
author_sort Baltakys, Kęstutis
collection PubMed
description In this paper, we ask whether the structure of investor networks, estimated using shareholder registration data, is abnormal during a financial crises. We answer this question by analyzing the structure of investor networks through several most prominent global network features. The networks are estimated from data on marketplace transactions of all publicly traded securities executed in the Helsinki Stock Exchange by Finnish stock shareholders between 1995 and 2016. We observe that most of the feature distributions were abnormal during the 2008–2009 financial crisis, with statistical significance. This paper provides evidence that the financial crisis was associated with a structural change in investors’ trade time synchronization. This indicates that the way how investors use their private information channels changes depending on the market conditions.
format Online
Article
Text
id pubmed-8063838
institution National Center for Biotechnology Information
language English
publishDate 2021
publisher MDPI
record_format MEDLINE/PubMed
spelling pubmed-80638382021-04-24 Structure of Investor Networks and Financial Crises Baltakys, Kęstutis Le Viet, Hung Kanniainen, Juho Entropy (Basel) Article In this paper, we ask whether the structure of investor networks, estimated using shareholder registration data, is abnormal during a financial crises. We answer this question by analyzing the structure of investor networks through several most prominent global network features. The networks are estimated from data on marketplace transactions of all publicly traded securities executed in the Helsinki Stock Exchange by Finnish stock shareholders between 1995 and 2016. We observe that most of the feature distributions were abnormal during the 2008–2009 financial crisis, with statistical significance. This paper provides evidence that the financial crisis was associated with a structural change in investors’ trade time synchronization. This indicates that the way how investors use their private information channels changes depending on the market conditions. MDPI 2021-03-24 /pmc/articles/PMC8063838/ /pubmed/33804826 http://dx.doi.org/10.3390/e23040381 Text en © 2021 by the authors. https://creativecommons.org/licenses/by/4.0/Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) ).
spellingShingle Article
Baltakys, Kęstutis
Le Viet, Hung
Kanniainen, Juho
Structure of Investor Networks and Financial Crises
title Structure of Investor Networks and Financial Crises
title_full Structure of Investor Networks and Financial Crises
title_fullStr Structure of Investor Networks and Financial Crises
title_full_unstemmed Structure of Investor Networks and Financial Crises
title_short Structure of Investor Networks and Financial Crises
title_sort structure of investor networks and financial crises
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8063838/
https://www.ncbi.nlm.nih.gov/pubmed/33804826
http://dx.doi.org/10.3390/e23040381
work_keys_str_mv AT baltakyskestutis structureofinvestornetworksandfinancialcrises
AT leviethung structureofinvestornetworksandfinancialcrises
AT kanniainenjuho structureofinvestornetworksandfinancialcrises