The
Department of Finance at the College of Business Administration (CBA)
successfully hosted the FERL Monthly Research Seminar featuring Professor
Avanidhar (Subra) Subrahmanyam, Distinguished Professor of Finance, Goldyne and
Irwin Hearsh Chair in Money and Banking, and Finance Area Chair at the UCLA
Anderson School of Management, USA.
Professor
Subrahmanyam, a world-renowned scholar in the fields of financial markets,
behavioral finance, and market microstructure, presented a stimulating research
seminar titled:
“Why Does Equity Trading Activity Vary Across the
World? An Empirical Investigation.”
In his
presentation, Professor Subrahmanyam explored why trading activity in equity
markets differs significantly across countries. Drawing on a rich cross-country
dataset, his research identified the main determinants of trading
activity—highlighting the role of analysts’ forecast divergence, institutional
ownership, and trading costs as key economic factors influencing market
liquidity and turnover.
He also
discussed how behavioral and cultural characteristics, such as ambiguity
aversion, risk tolerance, and gambling propensity, contribute to differences in
trading intensity between markets. The study further revealed that turnover
tends to be lower in populations with a higher proportion of women and
dependents, while higher financial development is associated with more active
trading.
The
seminar offered deep insights into the intersection of investor psychology,
cultural norms, and financial market efficiency, helping participants
understand how social and economic environments shape global trading patterns.
Faculty members, graduate students, and researchers engaged in a vibrant
discussion, raising thought-provoking questions about market behavior,
liquidity, and information efficiency in emerging economies.
Professor
Subrahmanyam’s presentation reflected his long-standing academic excellence and
contribution to finance research. He is the founding editor of the Journal
of Financial Markets and has received multiple awards, including the Smith
Breeden Prize and the Fama-DFA Prize for best papers in leading finance
journals.
The FERL
seminar continues to provide an engaging platform for faculty and students to
connect with leading scholars and exchange ideas on current research trends in
finance and economics.
🔗 Access the full paper: SSRN
Link