The Efficiency of Trading Halts: Emerging Market Evidence

Authors

  • Obiyathulla I. Bacha International Islamic University Malaysia
  • Mohamed Eskandar S. A. Rashid International Islamic University Malaysia
  • Roslily Ramlee International Islamic University Malaysia

Keywords:

Trading Halts, Price, Efficiency, Malaysia

Abstract

This paper reports new findings on the price effect from trading halts - both voluntary and mandatory - over 2000-04 in an emerging share market, Malaysia. Based on our overall sample, trading halts lead to positive price reaction, increased volume, and increased volatility. We found evidence of information leakage resulting in a significant difference between voluntary and mandatory halts as well as the type of news released during halts to warrant such an impact. The duration of the halt has an isolated impact and is largely inconsequential. The frequency of halts does not seem to matter.

Additional Files

Published

18-08-2008

How to Cite

Bacha, O. I., S. A. Rashid, M. E., & Ramlee, R. (2008). The Efficiency of Trading Halts: Emerging Market Evidence. International Journal of Banking and Finance, 5(2), 125–148. Retrieved from https://e-journal.uum.edu.my/index.php/ijbf/article/view/8372