Do psychological barriers exist in Latin American stock markets?

• Tipo: Artigo em Revista Científica Internacional
• Data: 2020

Autores

Júlio Lobão (Autor) FEP; Natércia Fortuna (Autor) FEP; Franklin Silva (Autor) Outra

Revista

Título: Revista de Analisis Economico

Vol. 35 Nº 2

Páginas: 29-56

ISSN: 0716-5927

Editora: Universidad Alberto Hurtado/School of Economics and Bussines

Indexação

Scopus - 0 Citações

SciELO - Scientific Electronic Library Online

Latindex

EBSCO

Classificação Científica

CORDIS: Ciências Sociais > Economia > Ciência financeira

FOS: Ciências sociais > Economia e gestão

Outras Informações

ID Authenticus: P-00S-VVN

DOI: 10.4067/S0718-88702020000200029

Abstract (EN): We examine for the first time the major stock markets of eight Latin American countries for indication of psychological barriers at round numbers. We test for uniformity in the trailing digits of the indices and use regression and GARCH analysis to assess the differential impact of being above or below a possible barrier. The Chilean stock market seems to be significantly different from its counterparts as it is the only one that showed virtually no signs of psychological barriers. There is mild to strong evidence of barriers in the remaining markets. These findings challenge the notion that most Latin American markets are unpredictable and lend credit to the claim that technical analysis strategies can be useful in some of these markets.

Idioma: Inglês

Tipo (Avaliação Docente): Científica