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Information Theory on Financial Markets and Financial Innovations

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A special issue of Entropy (ISSN 1099-4300). This special issue belongs to the section "Complexity".

Deadline for manuscript submissions: closed (30 June 2021) | Viewed by 4516

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Special Issue Information

Financial markets are developing fast enriching the investment opportunities around the globe. The globalization that the world experiencing is based on fast and reliable information convey among all involved participants: investors, companies, institutions, and governments. Valuations of assets and financial anomalies can be interpreted and explained using current information theory. This special issue of Entropy will concentrate on how information affects the financial markets in various fields such as Fintech, Blockchain, Real-Estate, Derivatives etc. We are specially interest in financial innovations and financial tools such as: Real Estate tokenization, SPACs versus traditional IPOs. Papers concerning financial markets anomalies and information influential factors are also welcome. Another important aspect of investment today is "Technical Analysis" in which information theory play a major roll. Papers that attribute theoretically and empirically to that field are welcome.

Dr. Gil Cohen
Dr. Qadan Mahmoud
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Entropy is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2600 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

financial information
financial markets
fintech
blockchain
Real-Estate
technical analysis
information trading and anomalies

Published Papers (1 paper)

Research

12 pages, 1359 KiB

Open AccessArticle

The Information Conveyed in a SPAC′s Offering

by Gil Cohen and Mahmoud Qadan

Entropy 2021, 23(9), 1215; https://0-doi-org.brum.beds.ac.uk/10.3390/e23091215 - 15 Sep 2021

Cited by 1 | Viewed by 3293

Abstract

The popularity of SPACs (Special Purpose Acquisition Companies) has grown dramatically in recent years as a substitute for the traditional IPO (Initial Public Offer). We modeled the average annual return for SPAC investors and found that this financial tool produced an annual return of 17.3%. We then constructed an information model that examined a SPAC′s excess returns during the 60 days after a potential merger or acquisition had been announced. We found that the announcement had a major impact on the SPAC’s share price over the 60 days, delivering on average 0.69% daily excess returns over the IPO portfolio and 31.6% cumulative excess returns for the entire period. Relative to IPOs, the cumulative excess returns of SPACs rose dramatically in the next few days after the potential merger or acquisition announcement until the 26th day. They then declined but rose again until the 48th day after the announcement. Finally, the SPAC’s structure reduced the investors’ risk. Thus, if investors buy a SPAC stock immediately after a potential merger or acquisition has been announced and hold it for 48 days, they can reap substantial short-term returns. Full article

(This article belongs to the Special Issue Information Theory on Financial Markets and Financial Innovations)

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