TY - JOUR
T1 - Stock market crashes and the performance of circuit breakers: Empirical evidence
AU - Lauterbach, B.
AU - U., R. I. BEN‐ZION
PY - 1993
Y1 - 1993
N2 - This study examines the behavior of a small stock market with circuit breakers and with a one-hour preauction order imbalance disclosure, during the October 1987 crash. The crash and its aftershocks lasted for a week and selling pressure was concentrated in higher beta, larger capitalization, and lower leverage firm stocks. Circuit breakers when implemented reduced the next-day opening order imbalance and the initial price loss; however, they had no effect on the long-run response. Some price overreaction and reversal phenomena also are documented.
AB - This study examines the behavior of a small stock market with circuit breakers and with a one-hour preauction order imbalance disclosure, during the October 1987 crash. The crash and its aftershocks lasted for a week and selling pressure was concentrated in higher beta, larger capitalization, and lower leverage firm stocks. Circuit breakers when implemented reduced the next-day opening order imbalance and the initial price loss; however, they had no effect on the long-run response. Some price overreaction and reversal phenomena also are documented.
UR - https://scholar.google.co.il/scholar?q=Stock+Market+Crashes+and+the+Performance+of+Circuit+Breakers%3A+Empirical+Evidence&btnG=&hl=en&as_sdt=0%2C5
M3 - Article
VL - 48
SP - 1909
EP - 1925
JO - The Journal of Finance
JF - The Journal of Finance
IS - 5
ER -