Inter-broker trades and return performance on the Toronto stock exchange
International Review of Economics and Finance , Volume 17 - Issue 2 p. 258- 268
This paper investigates whether trades initiated through institutional brokers generated better return performance than trades through full-service or discount brokers, on the Toronto Stock Exchange from September 1999 to August 2000. Daily findings show that trades through institutional brokers outperformed those through full-service and discount brokers. Trades through full-service brokers outperform those through discount brokers. Monthly findings show that trades through institutional brokers outperform those through full-service brokers, and for only the largest sized transactions when compared to discount brokers. Trades through full-service brokers with discount brokers show full-service outperforming for only the smallest-sized trades. In addition, discount brokers are found to trade much more actively than full-service brokers who in turn are more active than institutional brokers.
|Intraday return, Stock brokers, The TSX, Trading behavior|
|International Review of Economics and Finance|
|Organisation||Sprott School of Business|
Nemiroff, H, Zhang, Z. (Zhaohui), & Escobar, V.A. (Victor A.). (2008). Inter-broker trades and return performance on the Toronto stock exchange. International Review of Economics and Finance, 17(2), 258–268. doi:10.1016/j.iref.2006.08.007