The detrimental effect of ambiguity to the efficiency of financial markets has been discussed and written about by academics and practitioners since at least the early 1990’s. This paper tests the hypothesis that information reduces the ambiguity surrounding investor participation in Australia’s largest emissions trading scheme. This market was chosen due to the high level of ambiguity surrounding Government policy and the ability to determine the factors likely to reduce ambiguity. We find that information does reduce ambiguity as shown by reduced bid ask spreads, increased relative trading volume and an increased number of trades.
|Number of pages||2|
|Journal||Expo 2012 Higher Degree Research : book of abstracts|
|Publication status||Published - 2012|
|Event||Higher Degree Research Expo (8th : 2012) - Sydney|
Duration: 12 Nov 2012 → 13 Nov 2012
- climate change
- market efficiency