News

Talk about the Matthew Effect in peer-review

12.08.2022

Stefan Palan recently gave an online talk in the METRICS International Forum seminar at Stanford University, presenting "Testing the Matthew Effect in peer-review". You can watch the recording using the link below.

Link to the recording

Title slide of my talk at Stanford University. It carries the title of the talk ("Testing the Matthew Effect in peer-review"), the authors (Jürgen Huber, Sabiou Inoua, Rudolf Kerschbamer, Christian König-Kersting, Stefan Palan and Vernon Smith), their affiliations and the logos of the universities and funding agencies.he recording

Berivan Gürel joins research platform

08.08.2022

Berivan Gürel recently joined the research platform as a PhD student under the supervision of Prof. Stefan Palan. Berivan completed her Master's in Accounting & Finance at the University of Edinburgh. Besides her PhD studies, Berivan works in asset management in an insurance company.

In her PhD thesis, she plans to study the financial risk tolerance and risk perception of genders and sexes when making investment decisions.

Field trip to Frankfurt

28.07.2022

Following a successful academic year, about 25 students and members of the Institute of Banking and Finance at the University of Graz used the first days of summer break for a field trip to Frankfurt, Germany. As Germany's most important financial center, the city hosts various commercial banks, the European Central Bank, the Deutsche Bundesbank, and Europe’s third largest stock exchange. This concentration of interesting institutions in one place ensured a program packed with insightful visits and engaging discussions that were focused, among other topics, on macroprudential supervision, the newest developments in (digital) finance, and the link between science and practice.

Day 1:

- European Central Bank: Mandate and functions of the European Central Bank.

- Deutsche Bundesbank: Financial stability, supervision.

Day 2:

- DZ Bank: Security issuances, macroeconomic developments.

- Deutsche Boerse: Regulatory environment, digitalization, ESG.

We want to thank all of our hosts in Frankfurt for the time and effort they invested into making our visit a memorable event! Furthermore, we also want to thank Raiffeisen-Landesbank Steiermark for funding our bachelor and master students’ travel expenses in a continuation of the long-standing good partnership with the Institute of Banking and Finance at the University of Graz.

Photos: ©

Journal impact factor

28.06.2022

The Journal of Behavioral and Experimental Finance (JBEF), which platform member Stefan Palan has co-edited since 2018 and which platform member Roland Mestel serves as associate editor for, received its first impact factor of 8.222 at the end of July. This places the journal at rank 5 out of 111 finance journals and rank 13 out of 379 economics journals.

Successful FiRe Lecture with Josef Zechner

10.06.2022

In this years FiRe Lecture, Josef Zechner talked about the impact of pandemics and wars on financial markets.

Photo of the audience at the FiRe Lecture 2022. © Mayr

Photo: © Mayr

Successful on-site research seminar with Dirk Schiereck

11.05.2022

For the first time since the start of the Covid pandemic, we were able to hold an on-site research seminar, in which Dirk Schiereck presented recent results of the paper CFO Overconfidence and Shareholder Activism.

Photo of Dirk Schiereck and the audience.

New Paper on Insider Trading and Short Selling Regulation

21.04.2022

Modern capital markets are subject to many interventions and regulations, some of which curtail the implementation of specific trading strategies in a market. While we understand much of these regulations’ individual effects, the picture is less clear about their joint effects. A new paper, jointly authored by platform researchers Robert Merl and Stefan Palan (both University of Graz) and Thomas Stöckl (MCI Management Center Innsbruck) considers the interaction of two regulations, namely rules limiting shorting of assets and cash, and rules limiting insider trading. For these regulations, prior research shows spikes in short-selling activity around the revelation of insider information, which different studies trace to different causes. Among other results, the authors find that both allowing short positions and allowing informed trading causes informed traders to increase their market activity and causes mispricing and spreads to diminish. Nevertheless, they find no evidence for significant interaction effects between the two regulations.

The paper was presented at the FiRe Research Day in June 2019 and has recently been accepted for publication in The Journal of Banking and Finance.

Merl, R., Stöckl, T., Palan, S., 2022. "Insider trading regulation and shorting constraints. Evaluating the joint effects of two market interventions", Journal of Banking and Finance, 106490, DOI: https://doi.org/10.1016/j.jbankfin.2022.106490.

New Paper on the Reactions of a Change in Make/Take Fees on Liquidity and Trading Activity under (almost) Zero Tick Size

11.04.2022

Trading venues compete for order flow by offering various order types, access s peeds, and fee schedules. Fee schedules outline the fees, and rebates traders should expect to pay, or receive, for submitting orders to trade.

In a recent paper platform members Alexander Brauneis, Roland Mestel and Erik Theissen together with their co-author Ryan Riordan (Queen’s University) analyze the impact on liquidity and trading activity of the introduction of maker fees (and simultaneous reduction of taker fees) on a leading cryptocurrency trading platform. Cryptocurrency markets are special because they are non-intermediated and highly fragmented. Furthermore, for the currency pair the authors analyze (BTC-USD) the relative minimum tick size is negligible, a feature which allows them to derive predictions from the Colliard and Foucault (RFS; 2012) model which assumes a zero minimum tick size. Consistent with the model the paper finds that quoted spreads increase after the fee change. However, the increase is overcompensated by the decrease in taker fees. Quoted depth and the number of transactions decrease while the average trade size increases.

The paper was presented at the FiRe Research Day in Graz in June 2019 and has recently been accepted for publication in the Journal of Empirical Finance.

Brauneis, A., Mestel, R., Riordan, R.; Theissen, E. (2022). The anatomy of a fee change - evidence from cryptocurrency markets, Journal of Empirical Finance, DOI: https://doi.org/10.1016/j.jempfin.2022.03.003

Cover image of the Journal of Empirical Finance